>> Live from San Diego, California It's the queue covering Sisqo Live US 2019 Tio by Cisco and its ecosystem. Barker's >> Welcome Back to San Diego. Everybody watching the Cube, the leader in live tech coverage. This day. One of our coverage of Sisqo Live 2019 from San Diego. I'm Dave a lot with my co host to minimum. Lisa Martin is also here. Kip Compton is the senior vice president of Cisco's Cloud Platform and Solutions, and he's joined by Fabio Gori was the senior director of Cloud Solutions Marketing. Gentlemen, thanks so much for coming on the Cube. >> Thanks. Great to be here having us. >> You're very welcome, Fabio. So, Kip, Let's start with you. I want to start with a customer perspective. People are transforming. Cloud is part of that innovation cocktail, if you will. Absolutely. How would you summarize your customers? Cloud strategies? >> Well, I mean, in one word, I'd say Multi cloud, and it's what I've been saying for some time. Is Custer's air really expanding into the cloud and it really expanding into multiple clouds? And what's driving that is the need to take advantage of the innovation in the economics that are offered in the various clouds, and we sit like to say that they're expanding into the cloud because for the vast majority, their coast of our coasters, they have data centers. They're going to continue to have data centers. Nothing's going to keep running in those data centers now. What's happening is they thought it would be easy to start with everyone here. CEO Chuck likes to talk about, however, and thought they just moved to the cloud like moving to another neighborhood. Everything would be great. Well, when they're multiple clouds, you leaving some stuff on him. All of a sudden, what was supposed to be simple and easy becomes quite complex. >> Yeah, I've often said Well, multi club was kind of a symptom of multi vendor. But what you're saying is, essentially, it's it's becoming horses for courses, the workload matching the workload with the best cloud to solve that problem. >> I think it's a feature not above. I think it's here to stay. >> So how is that informing your strategy is Cisco? >> Well, you know, we're very customer responsive, and we see this problem and we look at how we can solve it and what customs have told us is that they want access to the different innovation in these different clouds and the different economic offers in each of these clouds. But they want to do it with less complexity, and they want to do it with less friction. And there's a bunch of areas where they're not looking for innovation. They don't need things work differently in networking. They want one way for networking to work across the multiple clouds and, frankly, to integrate with their own primus. Well. Likewise, for Security. A lot of Custer's air a little freaked out by the idea that there be different security regimes in every cloud that they use and maybe even different than what they already have on him. So they want that to be connected and to work management an application lifecycle. They're worried about that. They're like they don't want it to be different in every single cloud. A map Dynamics is a great example of an asset here. We got strong feedback for our customers that they needed to be able to measure the application performance in a common way across the environments. When imagine going to your CEO and talking about the performance of applications and having different metrics. 2,000,000,000 where it's hosted. It doesn't make any sense in terms of getting business insights. So I've dynamics is another example of something that Custer's one across all of that. So we really see Cisco's role is bringing all of those common capabilities and really reducing the complexity and friction of multi Cobb, enabling our customers to really take the most advantage possible. Multiple cloud. >> So Fabio kept talked about how moving to cloud is a little bit more complex than moving house from one neighborhood to the other. What are some of the key challenges that you guys are seeing? And how specifically is Cisco helping to ameliorate some of those challenges? >> Well, there are some challenges that are squarely in the camp where we can help. Others are related, and probably they're the toughest in clouds to fundamentally acquisition of talent. Right way can help with our custom off course with our partner ecosystem in this case, but a lot of that is really the culture of the company needs to change, right? We keep talking about develops way, keep talking about what does he mean operating this infrastructure in the cloud. It's a whole different ballgame, right? It's a continues integration, continues. Development is actually moving toe agile, kind of softer. The album models. And, you know, I very often do the analogy or what we've seen a few years ago in the data center space where we so actually, the end off the super specialization, like people on Lino in storage, all innit, working on ly computing. And then we saw the rise of people fundamentally expert in in the entire stack. We're seeing the same in the cloud with the rise of the Cloud Architect. These guys now are the ones they're behind building Cloud Centre of excellence. The issue. If you want guidance, where's the control remains into the other team's right. But this is very, very important. So it's overcoming, overcoming the talent gap and knowing how to deal with that on the bottom of that on the other side, so you get a free economy is technology challenges. For instance, embracing Q Burnett is becomes an embracing open source is a big, big challenge, right? You've gotta be able to master this kind of science if you want and trusting partners like, for instance, ourselves and others that will give you a curated versions of the softer image in life. Very often do customer meetings, and I ask how many how many tools to use in production for your Cuban Embassy plantation? And the answer ranges from 20 to 25. It's crazy, right? So imagine if 12 or three of these stools go away. What are you going to do? So you know, it's it's a whole different ball game really going to go into this kind of world. So Kip, we understand >> today, customers are multi cloud and future. It's going to be multi cloud. Think So. >> How do we make >> sure that multi cloud doesn't become least Domine, Denominator Cloud? Or, you know, you really say All I have is this combination of a bunch of pieces like the old multi vendor. How does multi cloud become more powerful than just the sum of its components? Is a good question, and we've really, I mean, way support a lot of different ways of accessing a cloud, Francisco, because we have such a broad Custer base and our goal is really to support our customers. However, they want to work. But we have made a bet in terms of avoiding the lowest common denominator on DH. Some people look ATT, accessing multiple clouds as sort of laying down one software platform and writing their software to one set of AP eyes that they didn't somehow implement in every cloud. And I think that does tend to get you to lowest common denominator because, you know, if you want to be on the Alexis Smart speaker, you have to be on the Lambda Service at a job. Yes, that's it. It doesn't exist anywhere else. And so if you're trying to create a common layer across so your clouds and that's your approach, you have to give up unique capabilities like that. And almost every consumer brand wants to be our needs to be on that election. Smart speaker. So we actually see it is more taking the functions that are not points of innovation, reducing the friction and leaving our customers with the time and energy to focus on taking advantage of their unique capabilities. And Fabio, you're partnering at Cisco with a number of their providers out there. Where are we with the maturity of all this? We were at the Cube con show and you know you're right. There's a lot of different tools. Simple is not what we're discussing, mostly out that show. So what do we solve today? And what kind of things does Cisco and its partners look to be solving kind of in the next 6 to 12 months? >> Partner? Partnering with this big players is absolutely a company priority for us, for Cisco, and one thing that's important is you, said multi vendor at the beginning. That was an interesting common, because if you think about it, multiple out is really business need, right? You want a hardness, innovation wherever it comes from. But then when you work with a specific provider in your reach, critical mass you want tohave integrations with this with this different providers, and that is the hybrid world. So hybrid is more of a technology need to streamline things like networking or security, or the way you storage because the poor things of this nature so that's three. Liza is a big need, and we'll continue, of course, adding more and more from the standpoint of partnerships every every one of the environments in our customers want to uses of interest for us, right to extend their policies to extend our reach. >> So just following up on that partnership, You guys air cloud agnostic, You don't own your own clouds, right? Not selling that. So you were at Google Cloud next to Europe on stage David Gettler, you've got a relationship with as your you got relationship with a W s. Obviously so talking about the importance of partnerships and specific strategy there in terms of your go to market, >> Well, you know, first, all the partnerships or critical I mean, it's you said we're not trying to move the workload Stark filed. And by the way, a lot of our customers has said that something that they value they see us is one of the biggest, most capable companies on the planet. That still is someone. I got sick and ableto work with them on. What's the right answer for their business? Not trying to move everything to one place and those partnerships a critical. So you're going to see us continue Teo building this partnerships. In fact, it's only day one here. I wouldn't be surprised if you saw some news this week on that. >> We were wondering if we're going to see somebody parachute in, that would be exciting. So why Cisco? Uh, ask each of you guys Maybe maybe, kid, you could You could give us the answer from your perspective and an Aussie. The same question. >> Well, from my perspective, it's based on what our customers tell us that again. You know, the things that were very good at things like networking and security are some of the biggest problems that our customs face in taking advantage of clouds and are some of things that they most want common across clouds. So we have a very natural role in this. I actually think back to the founding of Cisco, if you know the story. But it was Sandy Lerner and Limbo zakat Stanford. Their networks couldn't talk each other. You didn't remember back to the days like deck net and apple talk and all these things. It's hard to even recall because this new thing called peace pipe he obviously took over. That was the beginning of Sisko is building the multi protocol router that let those different islands talk each other. In many ways, Custer's see us doing sort of the same thing or want us to do the same thing in a multi cloud world. >> Well, just aside before I ask you, Fabian, a lot of people think that, you know, the microprocessor revolution killed many computers. IPads. Cisco kind of killed many computers to your point. But, Fabio, anything you would add to the sort of wisest >> guy would say, If you want my three seconds elevator peaches, we make multiple easier and more secure. Multiple this complex. So we definitely make it easier through our software. And we have three big buckets if you want there really compelling for for our customers, the 1st 1 is all of our software. Arsenal around weapon on his cloud center work looked a musician manager that helps last summer in building a unified application management kind of soft or sweet across home Prem and any of the public clouds that we've been talking about. The 2nd 1 is, as you said, we build on our DNA, which is, if you want and you heard Gettler today are multi domain kind of architecture, right, which is incredibly relevant in this case, you are not working in security. Fabric really is important there, and the thirties are ability because we don't compete with any other big players to partner with them and solve problems for our customers. So these three buckets are really, really important that deliver. Ah hi business value to >> our customers if I want to come back to something we're talking about is the Customs said the customers don't want a different security regime for each cloud, right? So it's complicated because, first of all, they're trying to struggle with their own security regime anyway, Right? Right? And that's transforming. What is the right right? Sorry security regime in this cloud here. How is it evolving? >> Well, me, What we're doing is we're bringing tools like Te Trae Shen, which now runs on prim and in the clouds. Things like stealth watch what's runs on permanent cloud and simply bringing them security frameworks that are very effective where I think a very capable of well known security vendor, but bringing them the capability to run the same capabilities in there on prem environments in their data centers as well as a multiple public clouds, and that just eliminates the scenes that hackers could maybe get into. It makes common policy possibles. They going to find policy around an application once and have it apply across Balto environments, which not only is easier for them but eliminates potential mistakes that they might make that might leave things open. Joe Hacker. So for us, it's that simple bringing very effective common frameworks for security across all these >> years. You certainly see the awareness of the security imperative moving beyond the SEC ops team. There's no question about that. It's now board level lines of business are worried about. For their digital transformation was data, but our organizations at the point where there operationalize ing security practices and the like, you know, to the extent that they should be >> well, I mean, I think when you say they should be, there's always room for improvement. Okay, but we're seeing just about all of our customers. I mean, as you said, securities is a sea level, if not a board level discussion and just about all of our customers. It's routinely top first or second concern on a survey when Custer's saw about what's concerning them with the clouds. And so we're seeing them really view, you know, security's foundational to what they're doing. >> I mean, it used to be. This sort of failure equals fire mentality. You somebody cracks through, you're fired. And so nobody talked about it. Now I think people realize, look, bad guys are going to get through. It's how you respond to them. Don't you think about how you using analytics, but yeah. So >> when we start just the >> way you were moving quickly >> towards, well, more or less quickly to a zero trust kind ofwork thie action assist you in this area every since the acquisition ofthe duo is performing exceptionally well. And if you want at the top of the security ecosystem in a multi polar world, you find identity because if you don't know who the user or the thing is, they're trying to use a certain application, you're in trouble because perimeter, all security off course is important. But you know that you're going to be penetrated, right? So it boils down to understanding who's doing what and re mediating a soon as possible. So it's a whole different paradigm >> of a security huge tail. When Francisco it's a business growing 21% a year, it's three more than three times the growth of the company. Overall, which is actually still pretty good. Five or 6%. So security rocketship? >> Yeah, Fabio, Just I noticed before we did the interview here that everybody is wearing the T shirts. The cloud takeover is happening here at the definite zone. So give those of us that you know aren't among the 28,000 you know here at the show. A little bit of what's happening from you're >> gonna do something unusual going, gonna turn that question to keep because he was actually on stage >> the second single. Why don't you just get that off? You know, I think it links back to it. Bobby. Always talking about what talent I mean, obviously the most important thing we bring our customers is the technology. We are a technology company, but so many of our customers were asking us to help them with this talent cap. And I think the growth of definite I mean, we're actually sitting here in the definite zone. It's got its own area Here. It's Sisk alive. It's gotten bigger every single year. Here it's just go live. The growth of definite is a sign of how important talent issue is as well as the new certifications that we announce we expanded our certification program to include software conjuncture with Dev. Net. So now people be able to get professional certifications Francisco not just on networking but on software capabilities and skills. And this is something both our partners, our customers have told us. They're really looking for now in terms of the takeover, it's something fun that the definite crew does. I think you're doing five of them during this week. I was really excited, Suzy. We asked us to be the first Eso es the opportunity. Kick it off. It does include beer. So that's one of the nice things. It includes T shirts, both things that I think are prevalent in the developer community. I'll say, Andi, just have an hour where the focus is on cloud technology. So we got everyone in cloud T shirts, a bunch of the experts for my product enduring teams on hand. We had some special presentations, were just many an hour focused on cloud >> Well, and I love that you're doing that definite zone. We've always been super impressed with this whole notion of infrastructures code. I think I've said many times of all the traditional enterprise cos you know computer companies, if you will hae t companies Cisco has done a better job of anybody than making its infrastructure programmable. We're talking about security before it's critical. If you're still tossing stuff over to the operations team, you're gonna be have exposures. Whereas you guys are in a position now and you talk talent, you're transitioning. You know the role of the C C I. A. And now is becoming essentially a developer of infrastructure is code, and it's a very powerful absolutely. I think we're >> helping our partners and our customers transform. Justus were transforming. I think it's kind of a symbiotic relationship that's super important to us. >> It's also important you think about the balancing act between agility, cost, called security or even data assurance. There. Tradeoffs involved the nobs. You have to turn, but you can. You can you achieve all three, you know, to optimize your business. >> Look, there may always be trade offs, but it's not sort of a zero sum game. All those we sing customers who've automated that through things like C I. D. Move Teo, you know, a different place in a much better place where They're not necessarily making trade offs on security to get better agility if they fully off if they fully automated their deployment chains. So they know that there are no mistakes there. They know that they have the ability to roll out fixes if they need to. They know that they're containers, for instance. They're being scanned from a security perspective, very every time they deploy them. They're actually able to build automated infrastructures that are more agile and more secure so that it's pretty exciting. >> So it involves the automated change management and date assurance talking about containers. That's interesting. Spinning up containers. You want to spend it down frequently. So the bad guys that makes it harder for them to get through. >> You talk about BM sprawling, right? Yeah, right. The Janus sprawling biggest issues out there. And by the way, you know, as you automate this infrastructure, rightly so you mention infrastructures code that you can do the other magic, which is introducing machine learning artificial intelligence. And today they get learn such Gupta gave school. Harold, thank you. Have a terrific demonstration off. You know, finding Rocco's analysis for very, very complex kind of problems that will take forever in the old fashion world. Now, all of a sudden you have the management system. In this case, the nation tells you actually where the problem is, and if you value there that you click a button and instantaneously you deploy, you know, new policies and configuration. That's a dream come true. Literally, you may say, probably we're the last ones to the party in terms of infrastructure players, the industry means. But we're getting there very quickly, and this is a whole new set of possibilities now, >> way talking the cube a lot, and I think it's really relevant for what I'm hearing about your strategies. This cloud is about bringing the cloud operating model to your data wherever your data lives. And that seems to be kind of underscore your your strategy. Absolutely. It's so edge cloud on Prem hybrid, you guys, Your strategy is really to enable customers to bring that operating model wherever they need to. Absolutely right >> that transparency is a big deal. I mean, application anywhere, eating. Did I anywhere? That's a world where we're going to >> guys thoughts. Final thoughts on Sisqo live this year. No, it's only day one gets a customer meetings tonight, but initial impression San Diego >> Well, it's It's a well, it's always great to be in San Diego on DH. It's a great facility, and we know our customers really enjoy San Diego is Well, I think we'll have a great customer appreciation event on Wednesday night. Um, but, you know, I was struck. Uh, you just have to the keynote. I mean, the world solutions was buzzing, and there seems to be is always a lot of energy. It's just go live. But somehow so far this season, maybe even a little bit more energy. I know we've got a number of announcements coming this week across a bunch different areas, including clouds. So we're excited for next few days. >> Well, you got the double whammy first half. We were in February when Barcelona guys don't waste any time. You come right back. And June, your final thoughts value. >> Oh, it's just so exciting to speak with customers and partners. Over here, you can touch their excitement. People love to come together and get old. The news, you know, in one place it's this tremendous amount of energy here. >> Keep copter Fabio Gori. Thanks so much for coming on The Cube. Appreciate it. Thank you for having your walkabout, keeper. Right, everybody. We'll be back with our next guest. David Out. A student of Aunt Lisa Martin. We're live from Cisco Live 2019 in San Diego, right back.

>> Live from Las Vegas, it's theCUBE covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Hey, welcome back, everyone. Live coverage here with theCUBE at Amazon Web Service re:Invent. I'm John Furrier. My cohost, Lauren Cooney, here. Breaking down all the action. Lot of announcements coming out of Amazon Web Services. Lot of killers new technologies, but also the IT game is changing. The two great guests from Cisco Assistant, Dave Cope, who's the Senior Director of Cloud Market Development, and Kip Compton, Senior Vice President Cloud Platform and Solutions. We got the big chiefs here. We've got the marketing development here. The Cisco store. I Tweeted just about an hour ago that your story is really aligned with Amazon. You had a recent announcement. The holy trinity of storage networking and compute is never going to go away, but it's changing. This is absolutely a big, pivotal moment with on-premises activity. You guys are on-premises king at Cisco. How is this changing your business with AWS? >> Well no, it's been an incredible year. Dave and I were just reflecting on it as we got ready for AWS. And it's a year where we started with people questioning hybrid. Multicloud was kind of new. Kubernetes looked like it was going to take off. And I think every major cloud provider now has announced the Kubernetes service. Hybrid is described as the new normal. And of course, Kubernetes and containers are an almost ideal technology for things like hybrid and multicloud. So its been an incredible year. And you mentioned the announcement we made three weeks ago with our hybrid, Kubernetes solution on AWS. And we've just gotten incredible interest in that. A lot of people interested in that solution, because most enterprises, as exciting as public cloud is, and as fast as they can move in that environment, have things that for whatever reason are on-prem and need to stay on-prem for some period of time. So really being able to bring those environments together is critical. >> You know, I got to say, Kip. I'm really impressed with Cisco's business model evolution. I've obviously been a big fan from day one, proud of the network. I just interviewed John Chambers just two weeks ago. Great to see the legend there. But what a great business model Cisco has with networking. Moving up the stack has always been a challenge, but since DevNet and DevNet Create, you started to see that the DevNet developer community, the Cisco ecosystem, was really gravitating towards cloud. Network guys are fickle. You either win 'em or you don't. They hold on to the network. They got to protect it. The cloud somehow changed the dynamic. And cloud-native, what is the dynamic there? 'Cause you guys have now stated publicly, developers, cloud-native, the Kubernetes announcement, you see a world where the network is borderless. >> Yep. >> But hybrid is the standard. Call it whatever you want, cloud or hybrid. It is what it is. How has cloud changed Cisco so much? >> Well, I mean I think not just cloud, but the network has changed. All of our customers, since they're adopting DevOps, and I think it's 54% of enterprises have begun a DevOps journey, because it just drives innovation at a much higher pace. And we're finding in almost every industry, in order to compete, companies have to be able to move fast in delivering incredible experiences to their customers and their employees in the form of apps. And DevOps is the way to do that. And to do DevOps, you need a fully-automated infrastructure. And so that, I think, is one of the reasons why DevNet, our developer program, has grown so much. We're really excited to see DevNet pass 500,000, half a million members of DevNet, right? And many of these are networking engineers who are learning how to program on Cisco equipment as we've added APIs across our portfolio, and brought programmable controllers into the picture as well. So we're seeing that then mesh very well with cloud, 'cause obviously DevOps is not just for on-prem, but it's for cloud, it's for hybrid. And as we bring a fully-automated infrastructure on-prem, that matches up very well with fully-automated infrastructures like AWS and enables these hybrid-use cases and DevOps in a hybrid model. >> That's great. And I think what you're doing with open-source technology is just phenomenal as well. Talk about some of the use cases that you guys see across the industry. If you can mention customer names, that's awesome. If you can't, I get it. But I'd love to hear more about how they're applying the solution today. >> You know, I think there's a number of use cases. One thing that's been really interesting, Kip reflected on sort of coming out of last year into this realization that multicloud was real. And I think we also, there was this realization that it wasn't just about saving money to move to the cloud. That now it was about going to different cloud environments to leverage innovation that could be occurring in different environments. So one of the use cases we see is how do we maybe develop a new application on a cloud that has a unique service, maybe like machine learning or AI that I want to leverage? We're starting to see other use cases where people are realizing it's not about lifting and shifting, or moving applications. But now I want to take an on-premise resource and maybe give it a facelift with a new, cool capability that resides on a different cloud. All of that, by having sort of common management, policy-based governance, are some of the use cases that we see. Certain DevOps is a big one. At the end of the day, we talked about developers. At the end of the day, developers want their apps to be able to move into production. And so with DevOps, the cloud, we're starting to see this overlap between developers and IT ops now working together to be able to ensure that these new applications can be put into production across many different environments. >> What's the biggest challenge you guys see customer's having? What problem are they trying to solve? Networking, you own the network. Networking's not going away. It's evolving. What's the big challenge that your buyers and your customers have right now? >> Maybe I'll say a few words, and he can add as well. Networking and security regularly show up at the top of any sort of survey about what's difficult with cloud. We're very fortunate that those are areas where we have very deep portfolios and could solve a lot of customer problems. It's very interesting to me, and I mentioned this in my talk this morning, but a study we did with IDC on cloud maturity found that only 14% of enterprises had an optimized cloud strategy. And what that means is 86% are trying to improve their cloud strategy, and are looking for solutions and things they can solve. So it's incredibly fertile area for us to help our customers really take advantage of their on-prem assets, but also multiple clouds in the multicloud world. >> I think one of the realizations is the cloud is not like the cloud. It's multiple public clouds. It's private clouds, virtual private clouds. And so even traditional disciplines like security and network management, when you're trying to do that across environments that you both control and don't control, they take on a whole new complexion. And so that's some of the challenges and the opportunities, I think, that companies are looking for across the cloud today. >> Well, I think it's an interesting story, too, with Cisco, because the strength has really emerged in the security arena, and that is the one thing that people are most concerned about when they're using Kubernetes. So I think just phenomenally, that's really something that's coming together nicely. Are you guys working with a security team and really kind of making things more secure for folks to make them more comfortable utilizing this solution, or can you talk a little bit about that? >> Yeah, sure, no. We are certainly working with a security team. And that's, as a former Cisco employee, I know you're familiar with Cisco. But one of the things that's different about cloud for us is that every part of Cisco is involved in our cloud strategy, right? So as you know from Cisco, and lot of customers who with Cisco know, we tend to have big groups inside the company that focus on certain technologies, be it data center or networking or whatever. Cloud is across all of those. And a big part of what Dave and I do, and the group that I lead does, is work across all of those groups to make sure that things come together for our customers. >> That's awesome. >> For instance, the solution that we announced three weeks ago on AWS for hybrid Kubernetes actually works with our security products, and has Stealthwatch Cloud from our security group integrated in the solution to give consistent security across the AWS EKS environment and the on-prem data center environment. So we're very much stitching security into everything we do. >> When you guys talk to customers, what do you say to them when they say okay, I'm a Cisco shop. We have a lot of on-premise. I'm looking at cloud. What do I do? How do you describe the ideal architecture and playbook for really working with cloud? To give the customer the best choice, all the stuff that they want, what's your recommendation? How do you talk to that customer? What do you recommend? >> Yeah, I don't know if there's a single path. I mean, that's one thing we found is it's, I hate to say it's complicated. But every customer has a different set of apps, maybe different constraints depending on what industry they're in, or what part of the world they're in, in terms of data protection. They may have different on-premise states. Applications that maybe they can't move, like an old ERP system. Or maybe simply investments that they want to continue to get value out of. So a lot of times, we end up engaging with them or one of our Cisco partners ends up engaging with them on sort of a cloud advisory process to understand their environment. But you know, there are definitely some trends that we're seeing. I think Dave and I can talk about. One is I've seen a lot more interest in how you develop new experiences in applications. And Dave mentioned it, but a big shift towards accelerating innovation with cloud, as opposed to minimizing cost. And I think it's a logical maturation as people see that as a lever to be more competitive. But really, every customer has a slightly different journey. >> Beauty is in the eye of the beholder. Scale, automation, moving from the command-line interface to dashboards. (laughs) >> Yeah, all about APIs in between, by the way. >> All right, guys. Give us the final word here on what's next. You guys got a great deal going on with Amazon. I love the Kubernetes announcement. As you know, we've been hiring Kubernetes since it started, but recently there's a lot going on there under the covers. Containers, different workloads, great for inter-clouding or multiclouding or hybrid clouding, whatever word they're calling it these days. What's next for you guys? Give us a quick peak into the, what's come up at Cisco Live in Barcelona? What's on the roadmap? What's your budget look like? (laughs) >> I know that look, so I definitely want to hear what that is. >> Tell us the secret sauce. >> Maybe I'll just tee it up and you jump in. When I look at a hybrid cloud and multicloud, a lot of the innovation we've seen was first really about cloud management platforms, creating some degree of abstraction across clouds. And then along came containers, Kubernetes you could develop and deploy anywhere. I think the big opportunity and challenge today is all of those have been focused on the app. Now how do we create this fluidity of data sources across this multicloud world? And that's an exciting opportunity right now. How do I not have the requirement to move big loads of data around, but access that data anywhere it resides to feed these new applications? So I think that's a big part of where hybrid cloud is going. >> You're focused. Are you hiring? What's the focus? What's coming on? What's the next deals you're going to do? >> Well, I mean we're big on Kubernetes as you can tell as well, so you're going to see continued innovation there, as well as security. You mentioned that. We think serverless is very interesting for where that could go. It's going to take some time, I think, for that to become mainstream from a developer perspective. But just to pile on to what Dave said, we started the year with oh, this hybrid, or is Kubernetes, is multicloud? All of that seems to be a resounding yes at this point, but we're moving from creating similar environments to really starting to integrate those environments. I think what we announced three weeks ago is a good example of where we create a single control play between those environments. Data exchange and tying that data together for hybrid, I think going from hybrid and evolving to multicloud, right? Where we have customers already saying oh, wait a second. We love your AWS announcement. We remember your Google announcement. You're giving us a common infrastructure on the on-prem side that can connect to multiple clouds. That's lowering the friction, lowering the complexity, making it easier for us. 'Cause customers are saying look, we need to harvest all the innovation. AWS is amazing, but TensorFlow at Google is a real thing. That's a real deal for some people. >> And that's important here in their framework, too, Amazon is. >> Yeah, absolutely. So we think it's an exciting time, and the pace of innovation's going to be, the one thing is the future's going to be hard to predict. That's the safe bet. >> You guys are on it. I'm excite to see. We've been pounding our fists on the table for years. The TCP/IP of the future is right in front of you. It's called Kubernetes! (laughs) Really great opportunity. You guys have good strategy. Congratulations. See how it plays out. Multicloud, make what's obvious, pretty obvious. Thanks for coming on, appreciate it. >> Great. >> Thanks. >> Thanks for your insight, thanks for the insight. Live coverage here on theCUBE. Stay with us for more after this short break. We'll be right back. Wall-to-wall coverage here at AWS re:Invent. I'm John Furrier and Lauren Cooney. Stay with us. (upbeat music)

>> Narrator: Live from San Diego California it's theCUBE covering Cisco Live, US, 2019 brought to you by Cisco and its ecosystem partners. >> Welcome back we're here at the San Diego convention center for Cisco Live 2019 and you're watching theCUBE the worldwide leader in enterprise tech coverage helping extract the signal from the noise. I'm Stu Miniman we've had three days wall to wall coverage my co-host Dave Vellante and Lisa Martin are all in the house and I'm really excited to actually sit down one on one with one of the users at this user conference the 30th anniversary conference actually for Cisco with their users and partners over 28,000 so speaking for all of them right? We have Sebastien Morissette who's an IT architect specialist at Intact Financial Corporation come to us from beautiful Montreal Canada. >> Exactly. >> All right thank you so much for joining us so Sebastien first of all how many Cisco Lives have you been too? >> Honestly this is my first. >> Oh absolutely exciting for that, my first one I came too was actually 10 years ago I joked at the 20th anniversary they went back 20 years to have some 80's bands they had The Bangles and Devo on and now on the 30 year they moved 10 years forwards they have two great bands from the 90's Wheezer and Foo Fighters so your first time at Cisco Live give us your general impressions of the show. >> Well actually it's been very great I've had a lot of appearances I had to do as well so I got some sessions in I did some work as well so it's amazing to see how these events unfold right? Like the sheer size of this thing and how many people are involved, how many booths how many technical sessions you can have so, I was very pleased I'm here with a lot of people from my team as well from Intact so you know we get the chance to do stuff outside of the work area as well so it's interesting right? It's giving us this opportunity to really deep dive into what we love which is technology but at the same time spend some time together outside of work. >> That's awesome, we've had gorgeous weather here in San Diego hope you definitely get to see the sights before we geek out on some of the technology just give our audience a little bit about Intact and the insurance business but give us a little bit about the history of the company and core focus. >> Okay well Intact is a company that was, they grew as acquisitions with acquisitions we've typically, we were ING Canada back in, before 2010 and afterwards we were publicly traded now so we're Intact Financial Corp. Typically we're the number one PNC insurer in Canada and we've been working with different partners to build our data center 2.0 initiative which is kind of a new offering of you know modern IT services within Intact. >> Okay great and just to, your purview in the company and just the comment about the company is you know when you talk about those transformations you know MNA is something we see a lot in your industry and put some extra special challenges in place when you're doing that but tell us a little bit about what's under your role and scope as to kind of locations, people however you measure you know what, boxes or ports or whatever. >> Okay well you know typically my role is lead architect within the infrastructure and security group for North America Intact through acquisition we actually bought OneBeacon Insurance last year, so typically we now have a US presence as well in specialty insurance, specialty lines so typically whenever we're looking at different technologies we look at the skills sets that we have, we look to see what can be the better half for us to you know accelerate and be more agile in how we actually consume technology so in some cases whatever we're looking at building up these new features like I was talking for data center 2.0 it happens that some of the technologies and the skill sets we have were with Cisco which is why we are here today with the team. >> All right so Sebastien you talk about data center 2.0 and transformation there at the organizational level is it branded data center transformation does the word digital transformation come up in your discussions? >> Yeah data center 2.0 is actually kind of the project name that we've been giving this initiative for the past two years but it really is at the essence a digital transformation, what we're doing is we're typically taking training wheels to the Cloud so we're building an on-prem private Cloud offering with multi-sites so we have three sites in the scope right now and the goal is really to actually allow our business to expand into the Cloud while being in a secure on-prem environment when we get to that maturity level where we feel we're ready to actually really go into public Cloud our software engineering teams our development teams will have experienced it on-prem safely and will have a confidence level to bringing them there so it has been transformational also because we decided to push DevOps culture as far as we can from an infrastructure team so we were trying to get all the adoption from our software engineering folks to actually structure themselves, bring on DevOps team and that we can share with them so they can actually be more agile and get a lot more done without having to depend on us and spend a lot of time waiting for VM's or stuff so trying to accelerate that. >> Awesome I love that 'cause sometimes you hear okay we're going to 2.0 it's basically a fancy refresh but we're going to keep things mostly the same when I hear DevOps I know that culture and organization is something that is a key piece of that, I have to ask you without getting down into the pedantics of this, when you say a private Cloud that's in your data center we understand some of the covenants and reasons what you have but how do you determine whether, what was your guiding line as to how is this a Cloud versus just some new virtualized environment? >> I've had the chance to have great executive sponsorship from my senior vice president typically we were looking at how can we access the Cloud? The way I approached it was overhauling what we do was not the route to go what I asked him to do is say you know trust me I'll start with a clean slate and we will build a brand new landing area for Cloud native applications and new methodologies for modern IT services so typically in the end we didn't overhaul anything that we had we built a brand new sandbox for Intact to be able to work with so we went from disaster recovery to business continuity in that move we've built a three site approach because when I was looking at kind of my capex expenditure if I was building two sites to be fully resilient and be business continuity I would be spending 200% of my capital to actually build up that capacity when you go to three sites it seems awkward but you just need 50% on each site of your capacity to ensure 100% of coverage of your requirements, so in the end you're actually spending 150% of your capacity, or your capex to buy the compute, so there's an incentive there as well. So to answer your question more precisely it's very easy for us to see how it's a Cloud because we're not operating it the same way we're operating our other environment and since we started from scratch every process has been revised we haven't kept everything we had before so we had the chance to build something brand new for that specific offering that our software engineering groups were asking us to do. >> All right that's exciting stuff there when you look at these multi-site deployments I think back in my career and I worked on some of these environments, management, security and networking are absolutely critical, I hear oh okay I've got 50% in each oh my God what if a site gets isolated and I can't talk to those other two so luckily I'm guessing Cisco has something to do with your rollout, we're obviously here at Cisco Live so give us a little bit inside the architecture and especially you know what kind of Cisco pieces are you using? >> All right well you know typically the way that our story started was kind of weird the first thing we've done is we've actually went to Cisco to redesign a DMZ and we got out from Cisco Montreal team with an idea to not just change and buy ACI switches for the DMZ but actually rebuild our whole design to you know integrate ACI into the fabric and then when you start talking about firewalls or switches they tell you well with ACI you have contracts so it really started that way so we built an ACI fabric with the Cisco HyperFlex hyper-converged infrastructure as our compute layer so typically think of it as Intact is building our new version of a software defined data center. So with building that we have all the components so we have the virtualization like you spoke of earlier which is running like you know VMware on site, on top of the HyperFlex and then we have the ACI since we had three sites we topped it off with the multi-site orchestrator to be able to manage consistent policies around all of our three sites and in the end we needed to have an orchestrator to be able to deploy the content onto that and when we were looking at it early on it was Clicker when Cisco purchased Clicker we were looking at finding a Cloud management platform, so we ended up using CloudCenter which is now CloudCenter Suite and in the way we were using it, which was a little atypical from the typical way clients are using CloudCenter today we're taking it into the data center and out to the Cloud whereas when I was talking with Kip Compton earlier this week he was saying you know what sometimes our clients buy it more for the Cloud first and I was like well we have like the inverse story of exactly how we did the opposite but it works as well, so typically where we stand today I have the three sites we're able to deploy with CloudCenter we've got multi-site on top of that and the idea it really is that, I spoke about training wheels earlier well we're taking them off right? In the next couple of weeks we're starting to look into negotiations with public Cloud providers trying to move towards the public Cloud and you know there's exciting news that came out from Cisco this week while I was here about the fact that now you know they're forecasting a lot more collaboration with Microsoft and AWS and now they have all the three major Cloud providers covered with ACI Anywhere so that means all of our security that you were talking about earlier will now have a consistent policy model applied all, everywhere so to be honest I'm not too concerned about if we did a good choice a couple of years back I think we're in our sweet spot right now. >> Yeah and you're right it's a different story than we've generally heard from Cisco and some customers which is I have all of these public Cloud's and I have my data center and I'm looking for some piece to help tie it together and that the CloudCenter Suite is there so you feel you're confident with the platform that you chose and that's going to give you the flexibility as to whichever public Cloud or public Cloud you choose are you at the point there that do you know which public Cloud you're going to be on or maybe it's a little too early? >> Well to be honest you know we're keeping our options open you know we have different providers that are offered, you know the major public one there's Amazon there's Google Cloud we're not closing any options it's really a question of us to do the same secure approach that we've done right now with this offering to really go one at a time make sure that we're able to nail it down, make it secure that we get all the information back so I'm not at a possibility right now to disclose which ones we're dealing with because we're still negotiating but in the end we're not limiting ourselves we just want to be able to scale. >> Right you're confident that the Cisco solution that you choose will give you the flexibility no matter which one you use or if you use multiples or need to make switches along the way? >> Yeah. >> Question I have for you on that is when you look at multi-Cloud one of the things that are challenging for companies is how do I make sure I've got the skillsets because workloads might be portable, networks might be connected but understanding how I manage each of those environments so do you feel CloudCenter Suite's going to help you through that? You know what do you see as you look out over your roadmap as to what that's going to mean for you know your DevOps team and the people managing this environment as it spreads out to the public Cloud? >> Actually I'm feeling really confident because you know especially after seeing a couple of sessions of what Roland Acra and Kip have announced for the data center and for the Cloud piece we're seeing more and more normalization being done by Cisco to actually allow us to be confident in the fact that on prem we're doing ACI and that our policies are going to be mapped to the constructs of the different Cloud providers. So for me what it means is I don't necessarily need to become specialized in how we're going to be operating inside of a Cloud we need to make sure that we get the proper policies built into the different products you know Cisco's branding it the Anywhere right? They have the HX Anywhere the ACI Anywhere and typically that's what we like about it is I can have one consistent set of skillsets and allow the people to use it one thing I found interesting about this week and it's not necessarily to do like more promotion for Cisco is like the Cloud First ACI right? So being able to be starting with ACI in the Cloud I found that was kind of interesting because when you know how the multi-site orchestrator works means apps you build out in the Cloud you're going to be able to to pull back in through the MSO and push it back on prem or anywhere in other Clouds afterwards so I found that was very intuitive of them to go to that route of allowing us to you know transparently migrate apps between sites. >> All right so Sebastien you're using a lot of the latest and greatest from Cisco you talk about the HX the ACI the CloudCenter Suite what advice do you give to your peers out there and they say you know I've used Cisco products for a long time Cisco makes great products but you know simplicity and management across the product lines was something that you know needed some work what does the Cisco of today look like you know what's working well? What still would you like to see them progress on? >> Well you know for us one of the things that was nice like I mentioned earlier is we're typically going greenfield so I didn't have a lot of the issues that other companies might be facing if they're trying to take their brownfield and actually make it into what we've built so my first advice would be if you're able to get the executive sponsorship to build a greenfield environment there's nothing in Cloud native applications that is you know symmetric with the traditional environment of a data center, it's completely different ways of working we have one week sprints we patch everything as it comes out if an application goes into the environment it needs to be functional with that patching cycle of almost every time we're at n or n-1 so, my thing is think about applications as being the center of what you actually need and not the infrastructure, let the infrastructure be what it is because you're going to be anywhere right? So that's one of the things I would say, from what you said about Cisco and the integration you were right, we have lived a couple of items like that in the last two years and a half, however I've noticed that these new software components like CloudShare and everything not necessarily the hardware part Cisco nails hardware like it works they've been doing it for years the thing is with these software teams they're very customer driven we have access to the engineers now I mean we've had meetings with the Canadian execs Roland Acra's team we were able to get access to the developers and the teams here in the US so, every company has challenges I would be lying if I told you that even at Intact we don't have silos and we don't have issues sometimes with different teams managing together but I feel as if at least for the technologies that we're using they've done good work for us to actually help us get through that. >> Well it's interesting Sebastian you bring that up because I look at you say okay, you've got a greenfield environment awesome, we can go do some new tech, well let's throw in there the DevOps and let's change all the other pieces you're like completely overhauling your environment how much of that were there some new team members that came in as part of that or you know I look people, process and technology sounded like you were taking it all on at once, did that work well? Would you have if you looked back would you have changed some of the ordering and maybe you know gotten one piece before the other or did it help to kind of you know start brand new start fresh and get everything going? >> Well I wouldn't redo the part of starting fresh however, it helped us get really good pace and work you know it's our first agile project as an infrastructure group so all of that was great learning experience the only thing I would say is you need to make sure your organization is ready for that level of change because it's one thing to have one VP sponsorship to actually build out this type of approach but where we struggled a little bit was afterwards getting the rest of our IT organization to kind of want to get onboard. because we are building something new, the traditional environment is not disappearing and we're telling our software engineering groups here's a new area where you can play in but you know typically I'd say that it's been well received we have not had the need to build new skillsets because we're doing infrastructure as code so typically a lot of the stuff we're building we're making sure it's automated so that way it's very nice and lean and when we build a new site we have a lot of automation already built in so we can properly just deploy so lessons learned like you've asked me I'd say that typically I'd probably do much of what I did the same way, but I would work a little bit more on the people area just to make sure that the message is clearly understood that what we're building is for the future of Intact and make sure that we spend a little bit more time managing that aspect because for the technology it's fine for the time it took and everything it's fine, it's really people the change is significant to most of them and when you've been doing something for a long time and someone comes up and disrupts it's like if we were disrupting our own company right? So typically I'd say, that would be something that I would say to people manage that properly or you will have a lot more work to do inside of that initiative to actually gain everybody's momentum and get them to be behind you. >> Well Sebastien I really appreciate you walking us through all of your transformation I want to just give you the final word sounds like you've got great access to Cisco really hope you're happy with what you've done final word is to you know your expectations coming into a show like this and you know what your take aways will be from Cisco Live 2019 in San Diego? >> Well outside from the amazing weather you mean or yeah? so you know typically I like the event I've been to other events before, like I said this is my first time at Cisco but what I've seen is that Cisco's really into getting their customers to understand their technology so they're really present so I really liked how you know we were given the opportunity to do hands on labs and actually learn new technologies so typically great experience coming here and great opportunities and thanks so much for having us. >> Well Sebastien Morissette congratulations to your team at Intact and thank you so much for sharing this story. >> Thank you so much. >> All right we've got a little bit more left here of three days wall to wall coverage Cisco Live 2019 in San Diego for Dave Vellante, Lisa Martin I'm Stu Miniman and thanks as always for watching theCUBE. 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(upbeat jazz music) >> Woman: From our studio's, in the heart of Silicon Valley Palo Alto California this is a CUBE conversation. >> John: Hello and welcome to this CUBE conversation here, exclusive coverage of Google Next 2019. I'm John Furrier, host of theCUBE. Big Google Cisco news, we're here with KD who's the vice president of the data center for compute for Cisco and Kip Compton, senior vice president of Cloud Platform and Solutions Group. Guys, welcome to this exclusive CUBE conversation. Thanks for spending the time. >> KD: Great to be here. >> So Google Next, obviously, showing the way that enterprises are now quickly moving to the cloud. Not just moving to the cloud, the cloud is part of the plan for the enterprise. Google Cloud clearly coming out with a whole new set of systems, set of software, set of relationships. Google Anthos is the big story, the platform. You guys have had a relationship previously announced with Google, your role in joint an engineering integrations. Talk about the relationship with Cisco and Google. What's the news? What's the big deal here? >> Kip: Yeah, no we're really excited. I mean as you mentioned, we've been working with Google Cloud since 2017 on hybrid and Multicloud Kubernetes technologies. We're really excited about what we're able to announce today, with Google Cloud, around Google Cloud's new Anthos system. And we're gonna be doing a lot of different integrations that really bring a lot of what we've learned through our joint work with them over the last few years, and we think that the degree of integration across our Data Center Portfolio and also our Networking and Security Portfolios, ultimately give customers one of the most secure and flexible Multicloud and hybrid architectures. >> One of the things we're seeing in the market place, I want to get your reactions to this Kip because I think this speaks to what's going on here at Google Next and the industry, is that the company's that actually get on the Cloud wave truly, not just say they're doing Cloud, but ride the wave of the enterprise Cloud, which is here. Multicloud is big conversation. Hybrids and implementation of that. Cloud is big part of it, the data center certainly isn't going away. Seeing a whole new huge wave. You guys have been big behind this at Cisco. You saw what the results are with Microsoft. Their stock has gone from where it was really low to really high because they were committed to the Cloud. How committed is Cisco to this Cloud Wave, what specifically are you guys bringing to the table for Enterprises? >> Oh we're very committed. We see it as the seminal IT transformation of our time, and clearly on of the most important topics in our discussions with CIO's across our customer base. And what we're seeing is, really not as much enterprises moving to the Cloud as much as enterprises extending or expanding into the Cloud. And their on-prem infrastructures, including our data centers as you mentioned, certainly aren't going away, and their really looking to incorporate Cloud into a complete system that enables them to run their business and their looking for agility and speed to deliver new experiences to their employees and to their customers. So we're really excited about that and we think sorta this Multicloud approaches is absolutely critical and its one of the things that Google Cloud and Cisco are aligned on. >> I'd like to get this couple talk tracks. One is the application area of Multicloud and Hybrid but first lets unpack the news of what's going on with Cisco and Google. Obviously Anthos is the new system, essentially its just the Cloud platform but that's what they're calling it, Googles anthem. How is Cisco integrating into this? Cause you guys had great integration points before Containers was a big bet that you guys had made. >> Kip: That's right. >> You certainly have, under the covers we learned at Cisco Live in Barcelona around what's going on with HyperFlex and ACI program ability, DevNet developer program going on. So good stuff going on at Cisco. What does this connect in with Google because ya got containers, you guys have been very full throttle on Kubernetes. Containers, Kubernetes, where does this all fit? How should your customers understand the relationship of how Cisco fits with Google Cloud? What's the integration? >> So let me start with, and backing it with the higher level, right? Philosophically we've been talking about Multicloud for a long time. And Google has a very different and unique view of how Cloud should be architected. They've gone 'round the open source Kubernetes Path. They've embraced Multicloud much more so then we would've expected. That's the underpinning of the relationship. Now you bring to that our deep expertise with serving Enterprise IT and our knowledge of what Enterprise IT really needs to productize some of these innovations that are born elsewhere. You get those two ingredients together and you have a powerful solution that democratizes some of the innovations that's born in the Cloud or born elsewhere. So what we've done here with Anthos, with Google HyperFlex, oh with Cisco's HyperFlex, with our Security Portfolio, our Networking Portfolio is created a mechanism for Enterprise ID to serve their constituent developers who are wanting to embrace Containers, readily packaged and easily consumable solution that they can deploy really easily. >> One of the things we're hearing is that this, the difference between moving to the Cloud versus expanding to and with the Cloud, and two kind of areas pop up. Operational's, operations, and developers. >> Kip: Yep. >> People that operate IT mention IT Democratizing IT, certainly with automation scale Cloud's a great win there. But you gotta operate it at that level at the same time serve developers, so it seems that we're hearing from customers its complicated, you got open source, you got developers who are pushing code everyday, and then you gotta run it over and over networks which have security challenges that you need to be managing everyday. Its a hardcore op's problem meets frictionalist development. >> Yeah so lets talk about both of these pieces. What do developers want? They want the latest framework. They want to embrace some of the new, the latest and greatest libraries out there. They want to get on the cutting edge of the stuff. Its great to experiment with open source, its really really hard to productize it. That's what we're bringing to the table here. With Anthos delivering a manage service with Cisco's deep expertise and taking complex technologies, packaging it, creating validated architectures that can work in an enterprise, it takes that complexity out of it. Secondly when you have a enterprise ID operator, lets talk about the complexities there, right? You've gotta tame this wild wild west of open source. You can't have drops every day. You can't have things changing every, you need a certain level of predictability. You need the infrastructure to slot in to a management framework that exists in the dollar center. It needs to slot into a sparing mechanism, to a workflow that exists. On top of that, you've got security and networking on multiple levels right? You've got physical networking, you've got container networking, you've got software define networking, you've got application level networking. Each layer has complexity around policy and intent that needs to marry across those layers. Well, you could try to stitch it together with products from different vendors but its gonna be a hot stinking mess pretty soon. Driving consistency dry across those layers from a vendor who can work in the data center, who can work across the layers of networking, who can work with security, we've got that product set. Between ACI Stealthwatch Cloud providing the security and networking pieces, our container networking expertise, HyperFlex as a hyper converge infrastructure appliance that can be delivered to IT, stood up, its scale out, its easy to deploy. Provides the underpinning for running Anthos and then, now you've got a smooth simple solution that IT can take to its developer and say Hey you know what? You wanna do containers? I've got a solution for you. >> And I think one of the things that's great about that is, you know just as enterprise's are extending into the Cloud so is Cisco. So a lot of the capabilities that KD was just talking about are things that we can deliver for our customers in our data centers but then also in the Cloud. With things like ACI Anywhere. Bringing that ACI Policy framework that they have on-prem into the Cloud, and across multiple Clouds that they get that consistency. The same with Stealthwatch Cloud. We can give them a common security model across their on-prem workloads and multiple public Cloud workload areas. So, we think its a great compliment to what Google's doing with Anthos and that's one of the reasons that we're partners. >> Kip I want to get your thoughts on this, because one of the things we've seen over the past years is that Public Cloud was a great green field, people, you know born in the Cloud no problem. (Kip laughs) And Enterprise would want to put workloads in the Cloud and kind of eliminate some of the compute pieces and some benefits that they could put in the cloud have been great. But the data center never went away, and they're a large enterprise. It's never going away. >> Kip: Yep. >> As we're seeing. But its changing. How should your customers be thinking about the evolution of the data center? Because certainly computes become commodity, okay need some Cloud from compute. Google's got some stuff there, but the network still needs to move packets around. You still got to store stuff, you still need security. They may not be a perimeter, but you still have the nuts and bolts of networking, software, these roles need to be taking place, how should these customers be thinking about Cloud, compute, integration on data primus? >> That is a great point and what we've seen is actually Cloud makes the network even more important, right? So when you have workloads and staff services in the Cloud that you rely on for your business suddenly the reliability and the performance and latency of your networks more important in many ways than it was before, and so that's something any of our customers have seen, its driving a lot of interest and offerings like SD-WAN from Cisco. But to your point on the data center side, we're seeing people modernize their data centers, and their looking to take a lot of the simplicity and agility that they see in a Public Cloud and bring it home, if you will, into the data center. Cause there are lots of reasons why data centers aren't going away. And I think that's one of the reasons we're seeing HyperFlex take off so much is it really simplifies multiple different layers and actually multiple different types of technology, storage, compute, and networking together into a sort of a very simple solution that gives them that agility, and that's why its the center piece of many of our partnerships with the Public Cloud players including Anthos. Because it really provides a Cloud like workload hosting capability on-prem. >> So the news here is that you guys are expanding your relationship with Google. What does it mean? Can you guys summarize the impact to your customers and the industry? >> Well I think that, I mean the impact for our customers is that you've two leaders working together, and in fact they're two leaders who believe in open technology and in a Multicloud approach. And we believe that both of those are fundamentally more aligned with our customers and the market than other approaches and so we're really excited about that and what it means for our customers in the future. You know and we are expanding the relationship, I mean there's not only what we're doing with Google Cloud's Anthos but also associated advances we've made about expanding our collaboration actually in the collaboration area with our Webex capabilities as well as Google Swed. So we're really excited about all of this and what we can enable together for our customers. >> You guys have a great opportunity, I always say latency is important and with low latency, moving stuff around and that's your wheelhouse. KD, talk about the relationship expanding with Google, what specifically is going on? Lets get down and dirty, is it tighter integration? Is it policy? Is it extending HyperFlex into Google? Google coming in? What's actually happening in the relationship that's expanding? >> So let me describe it in three ways. And we've talked a little bit about this already. The first is, how do we drive Cloud like simplicity on-prem? So what we've taken is HyperFlex, which is a scale out appliance, dead simple, easy to manage. We've integrated that with Anthos. Which means that now you've got not only a hyper conversion appliance that you can run workloads on, you can deliver to your developers Kubernetes eco system and tool set that is best in class, comes from Google, its managed from the Cloud and its not only the Kubernetes piece of it you can deliver the silver smash pieces of it, lot of the other pieces that come as part of that Anthos relationship. Then we've taken that and said well to be Enterprise grade, you've gotta makes sure the networking is Enterprise grade at every single layer, whether that is at the physical layer, container layers, fortune machine layer, at the software define networking layer, or in the service layer. We've been working with the teams on both sides, we've been working together to develop that solution and bring back the market for our customers. The third piece of this is to integrate security, right? So Stealthwatch Cloud was mentioned, we're working with the other pieces of our portfolio to integrate security across these offerings to make sure those flows are as secure as can be possible and if we detect anomalies, we flag them. The second big theme is driving this from the Cloud, right? So between Anthos, which is driving the Kubernetes and RAM from the Cloud our SD-WAN technology, Cisco's SD-WAN technology driven from the Cloud being able to terminate those VPN's at the end location. Whether that be a data center, whether that be an edge location and being able to do that seamlessly driven from the Cloud. Innerside, which takes the management of that infrastructure, drives it from the Cloud. Again a Cisco innovation, first in the industry. All of these marry together with driving this infrastructure from the Cloud, and what did it do for our eventual customers? Well it gave them, now a data center environment that has no boundaries. You've got an on-prem data center that's expanding into the Cloud. You can build an application in one place, deploy it in another, have it communicate with another application in the Cloud and suddenly you've kinda demolished those boundaries between data center and the Cloud, between the data center and the edge, and it all becomes a continuum and no other company other than Cisco can do something like that. >> So if I hear you saying, what you're saying is you're bringing the software and security capabilities of Cisco in the data center and around campus et cetera, and SD-WAN to Google Cloud. So the customer experience would be Cisco customer can deploy Google Cloud and Google Cloud runs best on Cisco. That's kinda, is that kind of the guiding principles here to this deal? Is that you're integrating in a deep meaningful way where its plug and play? Google Cloud meets Cisco infrastructure? >> Well we certainly think that with the work that we've done and the integrations that we're doing, that Cisco infrastructure including software capabilities like Stealthwatch Cloud will absolutely be the best way for any customer who wants to adopt Google Cloud's Anthos, to consume it, and to have really the best experience in terms of some of the integration simplicity that KD talked about but also frankly security's very important and being able to bring that consistent security model across Google Cloud, the workloads running there, as well as on-prem through things like Stealthwatch Cloud we think will be very compelling for our customers, and somewhat unique in the marketplace. >> You know one of the things that interesting, TK the new CEO of Google, and I had this question to Diane Green she had enterprise try ops of VM wear, Google's been hiring a lot of strong enterprise people lately and you can see the transformation and we've interviewed a lot of them, I have personally. They're good people, they're smart, and they know what they're doing. But Google still gets dinged for not having those enterprise chops because you just can't have a trajectory of those economy of scales over night, you can't just buy your way into the enterprise. You got to earn it, there's a certain track record, it seems like Google's getting a lot with you guys here. They're bringing Cloud to the table for sure for your customer base but you're bringing, Cisco complete customer footprint to Google Cloud. That seems to be a great opportunity for Google. >> Well I mean I think its a great opportunity for both of us. I mean because we're also bringing a fantastic open Multicloud hybrid solution to our customer base. So I think there's a great opportunity for our customers and we really focus on at the end of the day our customers and what do we do to make them more successful and we think that what we're doing with Google will contribute to that. >> KD talk about, real quickly summarize what's the benefits to the customers? Customers watching the announcements, seeing all the hype and all the buzz on this Google Next, this relationship with Cisco and Google, what's the bottom line for the customer? They're dealing with complexity. What are you guys solving, what the big take away for your customers? >> So its three things. First of all, we've taken the complexity out of the equation, right? We've taken all the complexity around networking, around security, around bridging to multiple Clouds, packaged it in a scale out appliance delivered in an enterprise consistent way. And for them, that's what they want. They want that simplicity of deployment of these next gen technologies, and the second thing is as IT serves their customers, the developers in house, they're able to serve those customers much better with these latest generation technologies and frameworks, whether its Containers, Kubernetes, HDL, some of these pieces that are part of the Anthos solution. They're able to develop that, deliver it back to their internal stakeholders and do it in a way that they control, they feel comfortable with, they feel their secure, and the networking works and they can stand behind it without having to choose or have doubts on whether they should embrace this or not. At the end of the day, customers want to do the right things to develop fast. To be nimble, to act, and to do the latest and greatest and we're taking all those hurtles out of the equations. >> Its about developers. >> It is. >> Running software on secure environments for the enterprise. Guys that's awesome news. Google Next obviously gonna be great conversations. While I have you here I wanna get to a couple talk tracks that are I important around the theme's recovering around Google Next and certainly challenges and opportunities for enterprises that is the application area, Multicloud, and Hybrid Cloud. So lets start with application. You guys are enabling this application revolution, that's the sound bites we hear at your events and certainly that's been something that you guys been publicly talking about. What does that mean for the marketplace? Because certain everyone's developing applications now, (Kip laughs) you got mobile apps, you got block chain apps, we got all kinds of new apps coming out all the time. Software's not going away its a renaissance, its happening. (Kip laughs) How is the application revolution taking shape? How is and what's Cisco's roll in it? >> Sure, I mean our role is to enable that. And that really comes from the fact that we understand that the only reason anyone builds any kind of infrastructure is ultimately to deliver applications and the experiences that applications enable. And so that's why, you know, we pioneered ACI is Application Centric Infrastructure. We pioneered that and start focusing on the implications of applications in the infrastructure any years ago. You know, we think about that and the experience that we can deliver at each layer in the infrastructure and KD talked a little bit about how important it is to integrate those layers but then we also bring tools like AppDynamics. Which really gives our customers the ability to measure the performance of their applications, understand the experience that they're delivering with customers and then actually understand how each piece of the infrastructure is contributing to and affecting that performance and that's a great example of something that customers really wanna be able to do across on-prem and multiple Clouds. They really need to understand that entire thing and so I think something like App D exemplifies our focus on the application. >> Its interesting storage and compute used to be the bottle necks in developers having to stand that up. Cloud solved that problem. >> Kip: That's right. >> Stu Miniman and I always talk about on theCUBE networking's the bottle neck. Now with ACI, you guys are solving that problem, you're making it much more robust and programmable. >> It is. >> This is a key part for application developers because all that policy work can be now automated away. Is that kinda part of that enablement? >> It sure is. I mean if you look at what's happening to applications, they're becoming more consumerized, they're becoming more connected. Whether its micro services, its not just one monolithic application anymore, its all of these applications talking to each other. And they need to become more secure. You need to know what happens, who can talk to whom. Which part of the application can be accessed from where. To deliver that, when my customer tell me listen you deliver the data center, you deliver security, you deliver networking, you deliver multicloud, you've got AppDynamics. Who else can bring this together? And that's what we do. Whether its ACI that specifies policy and does that programmable, delivers that programmable framework for networking, whether its our technologies like titration, like AppDynamics as Kip mentioned. All of these integrate together to deliver the end experience that customers want which is if my application's slow, tell me where, what's happening and help me deliver this application that is not a monolith anymore its all of these bits and pieces that talk to each other. Some of these bits and pieces will reside in the Cloud, a lot of them will be on-prem, some of them will be on the edge. But it all needs to work together-- >> And developers don't care about that they just care about do I get the resources do I need, And you guys kinda take care of all the heavy lifting underneath the covers. >> Yeah and we do that in a modern programmable way. Which is the big change. We do it in intent based way. Which means we let the developers describe the intent and we control that via policy. At multiple levels. >> And that's good for the enterprises, they want to invest more in developing, building applications. Okay track number two, talk track number two Multicloud. its interesting, during the hype cycle of Hybrid Cloud which was a while, I think now people realize Hybrid Cloud is an implementation thing and so its beyond hype now getting into reality. Multicloud never had a hype cycle because people generally woke up one day and said yeah I got multiple Clouds. I'm using this over here, so it wasn't like a, there was no real socialization around the concept of Multicloud they got it right away. They can see it, >> Yep. >> They know what they're paying for. So Multicloud has been a big part of your strategy at Cisco and certainly plays well into what's happening at Google Next. What's going on with Multicloud? Why's the relation with Google important? And where do you guys see Multicloud going from a Cisco perspective? >> Sure enough, I think you're right. The latest data we saw, or have, is 94 percent of enterprises are using or expect to use multiple Clouds and I think those surveys have probably more than six points of potential error so I think for all intensive purposes its 100 percent. (John and KD laughing) I've not met a customer who's unique Cloud, if that's a thing. And so you're right, its an incredibly authentic trend compared with some of these things that seem to be hype. I think what's happening though is the definition of what a Multicloud solution is is shifting. So I think we start out as you said, with a realization, oh wait a second we're all Multicloud this really is a thing and there's a set of problems to solve. I think you're seeing players get more and more sophisticated in how they solve those problems. And what we're seeing is its solving those problems is not about homogenizing all the Clouds and making them all the same because one of the reasons people are using multiple Clouds is to get to the unique capabilities that's in each Cloud. So I think early on there were some approaches where they said okay well we're gonna put down like a layer across all these Clouds and try to make them all look the same. That doesn't really achieve the point. The point is Google has unique capabilities in Google Cloud, certainly the tenser flow capabilities are one that people point to. AWS has unique capabilities as well and so does Dajour. And so customers wanna access all of that innovation. So that kind of answers your question of why is this relationship important to us, its for us to meet our customers needs, we need to have great relationships, partnerships, and integrations with the Clouds that are important to our customers. >> Which is all the Clouds. >> And we know that Google Cloud is important. >> Well not just Google Cloud, which I think in this relationship's got my attention because you're creating a deep relationship with them on a development side. Providing your expertise on the network and other area's you're experts at but you also have to work with other Clouds because, >> That's right we do. >> You're connecting Clouds, that's the-- >> And in fact we do. I mean we have, solutions for Hybrid with AWS and Dejour already launched in the marketplace. So we work with all of them, and what our roll, we see really is to make this simpler for our customers. So there are things like networking and security, application performance management with things like AppDynamics as well as some aspects of management that our customers consistently tell us can you just make this the same? Like these are not the area's of differentiation or unique capabilities. These are area's of friction and complexity and if you can give me a networking framework, whether its SD-WAN or ACI Anywhere that helps me connect those Clouds and manage policy in a consistent way or you can give me application performance the same over these things or security the same over these things, that's gonna make my life easier its gonna be lower friction and I'm expecting it, since your Cisco, you'll be able to integrate with my own Prime environment. >> Yeah, so then we went from hard to simple and easy, is a good business model. >> Kip: Absolutely. >> You guys have done that in the past and you certainly have the, from routing, everything up to switches and storage. KD, but talk about the complexity, because this is where it sounds complex on paper but when you actually unpack the technologies involved, you know in different Cloud suppliers, different technologies and tools. Throw in open sources into the mix is even more complex. So Multicloud, although sounds like a simple reality, the complexities pretty significant. Can you just share your thoughts on that? >> It is, and that's what we excel. We excel, I think complexity and distilling it down and making it simple. One other thing that we've done is, because each Cloud is unique and brings some unique capabilities, we've worked with those vendors along those dimension's that they're really really passionate about and strong end. So for example, with Google we've worked on the container front. They are, maybe one of the pioneers in that space, they've certainly delivered a lot of technologies into that domain. We've worked with them on the Kubeflow front on the AI front, in fact we are one of the biggest contributors to the open source projects on Kubeflow. And we've taken those technologies and then created a simple way for enterprise IT to consume them. So what we've done with Anthos, with Google, takes those technologies, takes our networking constructs, whether its ACI Anywhere, whether its other networking pieces on different parts of it, whether its SD-WAN and so forth. And it creates that environment which makes an enterprise IT feel comfortable with embracing these technologies. >> You said you're contributing to Kubeflow. A lot of people don't look at Cisco and would instantly come to the reaction that you guys are heavily contributing into open source. Can you just share, you know, the level of commitment you guys are making to open source? Just get that out there, and why? Why are you doing it? >> Yeah. For us, some of these technologies are really in need for incubation and nurturing, right? So Kubeflow is early, its really promising technology. People, in fact there's a lot of buzz about AI-- >> In your contributing to Kubeflow, significantly? >> Yes, yeah. >> Cisco? >> We're number three contributor actually. Behind Google. >> Okay so you're up there? You're up at the top of the list? >> Yeah one of the top three. >> Top of the list. >> And why? Is this getting more collaborative? More Multicloud fabric-- >> Well I mean, again it comes back to our customers. We think Kubeflow is a really interesting framework for AI and ML and we've seen our customers that workload type is becoming more and more important to them. So we're supporting that because its something we think will help our customers. In fact, Kubeflow figures into how we think about Hybrid and Multicloud with Google and the Anthos system in terms of giving customers the ability to run those workloads in Google Cloud with TPU's or on-prem with some of the incredible appliances that we've delivered in the data centers using GPU's to accelerate these workings. >> And it also certainly is compatible with the whole Multicloud mission as well-- >> Exactly, yeah. >> That's right. >> So you'll see us, we're committed to open source but that commitment comes through the lens of what we think our customers need and want. So it really again it comes back to the customer for us, and so you'll see us very active in open source areas. Sometimes, I think to your point, we should be louder about that. Talk more about that but we're really there to help our customers. DevNet, DevNet Create that Susie Wee's been working on has been a great success. I mean we've witnessed it first hand, seeing it at the Cisco Live packed house. >> In Barcelona. >> You've got developers developing on the network its a really big shift. >> Yeah absolutely. >> That's a positive shift. >> Well its a huge shift, I think its natural as you see Cisco shifting more and more towards software you see much much more developer engagement and we're thrilled with the way DevNet has grown. >> Yeah, and networking guys in your target audience gravitates easily to software it seems to be a nice fit. So good stuff there. Third talk track, Hybrid. You guys have deep bench of tech and people on network security, networking security, data center, and all the things involved in the years and years of enterprise evolution. Whether its infrastructure and all the way through the facilities, lot of expertise. Now Hybrid comes onto the scene. Went through the little hype cycle, people now get it, you gotta operate across Clouds on-prem to the Cloud and now multiple Clouds so what's the current state of Cisco-Google relationship with Hybrid? How is that fitting in, Google Next and beyond? >> So let me tease that in the context of some history, right? So if we go back, say 10 years, virtualization was the bad word of the day. Things were getting virtualized. We created the best data center infrastructure for virtualization in our UCS platforms. Completely programmable infrastructure's code, a very programmable environment that can back a lot of density of virtual machines, right? Roll forward three or four years, storage and compute were getting unwieldily. There was complexity there to be solved. We created the category of converge infrastructure, became the leader of that category whether we work with DMC and other players. Roll forward another four or five years we got into the hyper conversion infrastructure space with the most performant ACI appliance on the market anywhere. And most performant, most consistent, deeply engineered across all the stacks. Can took that complexity, took our learnings and DNA networking and married it together to create something unique for the industry. Now you think, do other domains come together? Now its the Cloud and on-prem. And if that comes together we see similar kinds of complexity. Complexity in security, complexity in networking, complexity in policy and enforcement across layers. Complexity, frankly in management, and how do you make that management much more simple and consumerized? We're taking that complexity and distilling it down into developing a very simple appliance. So what we're trying to deliver to the customer is a simple appliance that they can stand and procure and set up much in the way that they're used to but now the appliance is scale out. Its much more Cloud like. Its managed from the Cloud. So its got that consumer modern feel to it. Now you can deliver on this a container environment, a container development environment, for your developer stakeholders. You can deliver security that's plumed through and across multiple layers, networking that's plumed through and across multiple layers, at the end of the day we've taken those boundaries between Cloud and data center and blown them away. >> And you've merged operational constructs of the old data center operations to Cloud like operations, >> Yeah. >> Everything's just a service, you got Microservices coming, so you didn't really lose anything, you'd mentioned democratizing IT earlier, you guys are bringing the HyperFlex to ACI to the table so you now can let customers run, is that right? Am I getting it right? >> That's right. Its all about how do you take new interesting technologies that are developed somewhere, that may have complexity because its open source and exchanging all the time or it may have complexity because it was not been for a different environment, not for the on-prem environment. How do you take that innovation and democratize it so that everybody, all of the 100's of thousands and millions of enterprise customers can use it and feel comfortable using it and feel comfortable actually embracing it in a way that gives them the security, gives them the networking that's needed and gives them a way that they can serve their internal stakeholders very easily. >> Guys thanks for taking the time for this awesome conversation. One final question, gettin you both to weigh in on, here at Google Next 2019, we're in 2019. Cloud's going a whole other level here. What's the most important story that customers should pay attention to with respect to expanding into the Cloud, taking advantage of the growing developer ecosystem as open source continues to go to the next level. What's the most important thing happening around Google Next and the industry with respect to Cloud and for the enterprise? >> Well I think certainly here at Google Next the Google Cloud's Anthos announcement is going to be of tremendous interest to enterprises cause as you said they are extending into the Cloud and this is another great option for enterprises who are looking to do that. >> Yeah and as I look at it suddenly IT has a set of new options. They used to be able to pick networking and compute and storage, now they can pick Kubeflow for AI or they can pick Kubernetes for container development, Anthos for an on-prem version. They're shopping list has suddenly gone up. We're trying to keep that simple and organized for them so that they can pick the best ingredients they can and build the best infrastructure they can, they can do it. >> Guys thanks so much. Kip Compton senior vice president Cloud Platform and Solutions Group and KD vice president of the Data Center compute group for Cisco. Its been exclusive CUBE conversation around the Google-Cisco big news at Google Next 2019 and I'm John Furrier thanks for watching. (upbeat jazz music)

(upbeat music) >> Hi, welcome to this year's Annual Wikibon Predictions. This is our 2018 version. Last year, we had a very successful webinar describing what we thought was going to happen in 2017 and beyond and we've assembled a team to do the same thing again this year. I'm very excited to be joined by the folks listed here on the screen. My name is Peter Burris. But with me is David Floyer, Jim Kobielus is remote. George Gilbert's here in our Pal Alto studio with me. Neil Raden is remote. David Vellante is here in the studio with me. And Stuart Miniman is back in our Marlboro office. So thank you analysts for attending and we look forward to a great teleconference today. Now what we're going to do over the course of the next 45 minutes or so is we're going to hit about 13 of the 22 predictions that we have for the coming year. So if you have additional questions, I want to reinforce this, if you have additional questions or things that don't get answered, if you're a client, give us a call. Reach out to us. We'll leave you with the contact information at the end of the session. But to start things off we just want to make sure that everybody understands where we're coming from. And let you know who is Wikibon. So Wikibon is a company that starts with the idea of what's important as to research communities. Communities are where the action is. Community is where the change is happening. And community is where the trends are being established. And so we use digital technologies like theCUbE, CrowdChat and others to really ensure that we are surfacing the best ideas that are in a community and making them available to our clients so that they can succeed successfully, they can be more successful in their endeavors. When we do that, our focus has always been on a very simple premise. And that is that we're moving to an era of digital business. For many people, digital business can mean virtually anything. For us it means something very specific. To us, the difference between business and digital business is data. A digital business uses data to differentially create and keep a customer. So borrowing from what Peter Drucker said if the goal of business is to create customers and keep and sustain customers, the goal of digital business is to use data to do that. And that's going to inform an enormous number of conversations and an enormous number of decisions and strategies over the next few years. We specifically believe that all businesses are going to have establish what we regard as the five core digital business capabilities. First, they're going to have to put in place concrete approaches to turning more data into work. It's not enough to just accrete data, to capture data or to move data around. You have to be very purposeful and planful in how you establish the means by which you turn that data into work so that you can create and keep more customers. Secondly, it's absolutely essential that we build kind of the three core technology issues here, technology capabilities of effectively doing a better job of capturing data and IoT and people, or internet of things and people, mobile computing for example, is going to be a crucial feature of that. You have to then once you capture that data, turn it into value. And we think this is the essence of what big data and in many respects AI is going to be all about. And then once you have the possibility, kind of the potential energy of that data in place, then you have to turn it into kinetic energy and generate work in your business through what we call systems of agency. Now, all of this is made possible by this significant transformation that happens to be conterminous with this transition to digital business. And that is the emergence of the cloud. The technology industry has always been defined by the problems it was able to solve, catalyzed by the characteristics of the technology that made it possible to solve them. And cloud is crucial to almost all of the new types of problems that we're going to solve. So these are the five digital business capabilities that we're going to talk about, where we're going to have our predictions. Let's start first and foremost with this notion of turn more data into work. So our first prediction relates to how data governance is likely to change in a global basis. If we believe that we need to turn more data into work well, businesses haven't generally adopted many of the principles associated with those practices. They haven't optimized to do that better. They haven't elevated those concepts within the business as broadly and successfully as they have or as they should. We think that's going to change in part by the emergence of GDPR or the General Data Protection Regulation. It's going to go in full effect in May 2018. A lot has been written about it. A lot has been talked about. But our core issues ultimately are is that the dictates associated with GDPR are going to elevate the conversation on a global basis. And it mandates something that's now called the data protection officer. We're going to talk about that in a second David Vellante. But if is going to have real teeth. So we were talking with one chief privacy officer not too long ago who suggested that had the Equifax breach occurred under the rules of GDPR that the actual finds that would have been levied would have been in excess of 160 billion dollars which is a little bit more than the zero dollars that has been fined thus far. Now we've seen new bills introduced in Congress but ultimately our observation and our conversations with a lot of data chief privacy officers or data protection officers is that in the B2B world, GDPR is going to strongly influence not just our businesses behavior regarding data in Europe but on a global basis. Now that has an enormous implication David Vellante because it certainly suggest this notion of a data protection officer is something now we've got another potential chief here. How do we think that's going to organize itself over the course of the next few years? >> Well thank you Peter. There are a lot of chiefs (laughs) in the house and sometimes it gets confusing as the CIO, there's the CDO and that's either chief digital officer or chief data officer. There's the CSO, could be strategy, sometimes that could be security. There's the CPO, is that privacy or product. As he says, it gets confusing sometimes. On theCUbE we talked to all of these roles so we wanted to try to add some clarity to that. First thing we want to say is that the CIO, the chief information officer, that role is not going away. A lot of people predict that, we think that's nonsense. They will continue to have a critical role. Digital transformations are the priority in organizations. And so the chief digital officer is evolving from more than just a strategy role to much more of an operation role. Generally speaking, these chiefs tend to report in our observation to the chief operating officer, president COO. And we see the chief digital officer as increasing operational responsibility aligning with the COO and getting incremental responsibility that's more operational in nature. So the prediction really is that the chief digital officer is going to emerge as a charismatic leader amongst these chiefs. And by 2022, nearly 50% of organizations will position the chief digital officer in a more prominent role than the CIO, the CISO, the CDO and the CPO. Those will still be critical roles. The CIO will be an enabler. The chief information security officer has a huge role obviously to play especially in terms of making security a teams sport and not just falling on IT's shoulders or the security team's shoulders. The chief data officer who really emerged from a records and data management role in many cases, particularly within regulated industries will still be responsible for that data architecture and data access working very closely with the emerging chief privacy officer and maybe even the chief data protection officer. Those roles will be pretty closely aligned. So again, these roles remain critical but the chief digital officer we see as increasing in prominence. >> Great, thank you very much David. So when we think about these two activities, what we're really describing is over the course of the next few years, we strongly believe that data will be regarded more as an asset within business and we'll see resources devoted to it and we'll see certainly management devoted to it. Now, that leads to the next set of questions as data becomes an asset, the pressure to acquire data becomes that much more acute. We believe strongly that IoT has an enormous implication longer term as a basis for thinking about how data gets acquired. Now, operational technology has been in place for a long time. We're not limiting ourselves just operational technology when we talk about this. We're really talking about the full range of devices that are going to provide and extend information and digital services out to consumers, out to the Edge, out to a number of other places. So let's start here. Over the course of the next few years, the Edge analytics are going to be an increasingly important feature overall of how technology decisions get made, how technology or digital business gets conceived and even ultimately how business gets defined. Now David Floyer's done a significant amount of work in this domain and we've provided that key finding on the right hand side. And what it shows is that if you take a look at an Edge based application, a stylized Edge based application and you presume that all the data moves back to an centralized cloud, you're going to increase your costs dramatically over a three year period. Now that moderates the idea or moderates the need ultimately for providing an approach to bringing greater autonomy, greater intelligence down to the Edge itself and we think that ultimately IoT and Edge analytics become increasingly synonymous. The challenge though is that as we evolve, while this has a pressure to keep more of the data at the Edge, that ultimately a lot of the data exhaust can someday become regarded as valuable data. And so as a consequence of that, there's still a countervailing impression to try to still move all data not at the moment of automation but for modeling and integration purposes, back to some other location. The thing that's going to determine that is going to be rate at which the cost of moving the data around go down. And our expectation is over the next few years when we think about the implications of some of the big cloud suppliers, Amazon, Google, others, that are building out significant networks to facilitate their business services may in fact have a greater impact on the common carriers or as great an impact on the common carriers as they have on any server or other infrastructure company. So our prediction over the next few years is watch what Amazon, watch what Google do as they try to drive costs down inside their networks because that will have an impact how much data moves from the Edge back to the cloud. It won't have an impact necessarily on the need for automation at the Edge because latency doesn't change but it will have a cost impact. Now that leads to a second consideration and the second consideration is ultimately that when we talk about greater autonomy at the Edge we need to think about how that's going to play out. Jim Kobielus. >> Jim: Hey thanks a lot Peter. Yeah, so what we're seeing at Wikibon is that more and more of the AI applications, more of the AI application development involves AI and more and more of the AI involves deployment of those models, deep learning machine learning and so forth to the Edges of the internet of things and people. And much of that AI will be operating autonomously with little or no round-tripping back to the cloud. What that's causing, in fact, we're seeing really about a quarter of the AI development projects (static interference with web-conference) as Edge deployment. What that involves is that more and more of that AI will be, those applications will be bespoke. They'll be one of a kind, or unique or an unprecedented application and what that means is that, you know, there's a lot of different deployment scenarios within which organizations will need to use new forms of learning to be able to ready that data, those AI applications to do their jobs effectively albeit to predictions of real time, guiding of an autonomous vehicle and so forth. Reinforcement learning is the core of what many of these kinds of projects, especially those that involve robotics. So really software is hitting the world and you know the biggest parts are being taken out of the Edge, much of that is AI, much of that autonomous, where there is no need or less need for real time latency in need of adaptive components, AI infused components where as they can learn by doing. From environmental variables, they can adapt their own algorithms to take the right actions. So, they'll have far reaching impacts on application development in 2018. For the developer, the new developer really is a data scientist at heart. They're going to have to tap into a new range of sources of data especially Edge sourced data from the senors on those devices. They're going to need to do commitment training and testing especially reinforcement learning which doesn't involve trained data so much as it involves being able to build an algorithm that can learn to maximum what's called accumulative reward function and if you do the training there adaptly in real time at the Edge and so forth and so on. So really, much of this will be bespoke in the sense that every Edge device increasingly will have its own set of parameters and its own set of objective functions which will need to be optimized. So that's one of the leading edge forces, trends, in development that we see in the coming year. Back to you Peter. >> Excellent Jim, thank you very much. The next question here how are you going to create value from data? So once you've, we've gone through a couple trends and we have multiple others about what's going to happen at the Edge. But as we think about how we're going to create value from data, Neil Raden. >> Neil: You know, the problem is that data science emerged rapidly out of sort of a perfect storm of big data and cloud computing and so forth. And people who had been involved in quantitative methods you know rapidly glommed onto the title because it was, lets face it, it was very glamorous and paid very well. But there weren't really good best practices. So what we have in data science is a pretty wide field of things that are called data science. My opinion is that the true data scientists are people who are scientists and are involved in developing new or improving algorithms as opposed to prepping data and applying models. So the whole field really kind of generated very quickly, in really, just in a few years. To me I called it generation zero which is more like data prep and model management all done manually. And it wasn't really sustainable in most organizations because for obvious reasons. So generation one, then some vendors stepped up with tool kits or benchmarks or whatever for data scientists and made it a little better. And generation two is what we're going to see in 2018, is the need for data scientists to no longer prep data or at least not spend very much time with it. And not to do model management because the software will not only manage the progression of the models but even recommend them and generate them and select the data and so forth. So it's in for a very big change and I think what you're going to see is that the ranks of data scientists are going to sort of bifurcate to old style, let me sit down and write some spaghetti code in R or Java or something and those that use these advanced tool kits to really get the work done. >> That's great Neil and of course, when we start talking about getting the work done, we are becoming increasingly dependent upon tools, aren't we George? But the tool marketplace for data science, for big data, has been somewhat fragmented and fractured. And hasn't necessarily focused on solving the problems of the data scientists. But in many respects focusing the problems that the tools themselves have. What's going to happen in the coming year when we start thinking about Neil's prescription that as the tools improve what's going to happen to the tools. >> Okay so, the big thing that we see supporting what Neil's talking about, what Neil was talking about is partly a symptom of a product issue and a go to market issue where the produce issue was we had a lot of best of breed products that were all designed to fit together. That in the broader big data space, that's the same issue that we faced with more narrowly with ArpiM Hadoop where you know, where we were trying to fit together a bunch of open source packages that had an admin and developer burden. More broadly, what Neil is talking about is sort of a richer end to end tools that handle both everything from the ingest all to the way to the operationalization and feedback of the models. But part of what has to go on here is that with open source, these open source tools the price point and the functional footprints that many of the vendors are supporting right now can't feed an enterprise sales force. Everyone talks with their open source business models about land and expand and inside sales. But the problem is once you want to go to wide deployment in an enterprise, you still need someone negotiating commercial terms at a senior level. You still need the technical people fitting the tools into a broader architecture. And most of the vendors that we have who are open source vendors today, don't have either the product breadth or the deal size to support traditional enterprise software. An account team would typically a million and a half to two million quota every year so we see consolidation and the consolidation again driven by the need for simplicity for the admins and the developers and for business model reasons to support enterprise sales force. >> All right, so what we're going to see happen in the course of the coming year is a lot of specialization and recognition of what is data science, what are the practices, how is it going to work, supported by an increasing quality of tools and a lot of tool vendors are going to be left behind. Now the third kind of notion here for those core technology capabilities is we still have to enact based on data. The good new is that big data is starting to show some returns in part because of some of the things that AI and other technologies are capable of doing. But we have to move beyond just creating the potential for, we have to turn that into work and that's what we mean ultimately by this notion of systems of agency. The idea that data driven applications will increasingly be act on behalf of a brand, on behalf of a company and building those systems out is going to be crucial. It's going to have a whole new set of disciplines and expertise required. So when we think about what's going to be required, it always starts with this notion of AI. A lot of folks are presuming however, that AI is going to be relatively easy to build or relatively easy to put together. We have a different opinion George. What do we think is going to happen as these next few years unfold related to AI adoption in large enterprises? >> Okay so, let's go back to the lessons we learned from sort of the big data, the raw, you know, let's put a data link in place which was sort of the top of everyone's agenda for several years. The expectation was it was going to cure cancer, taste like chocolate and cost a dollar. And uh. (laughing) It didn't quite work out that way. Partly because we had a burden on the administrator again of so many tools that weren't all designed to fit together, even though they were distributed together. And then the data scientists, the guys who had to take all this data that wasn't carefully curated yet. And turn that into advanced analytics and machine learning models. We have many of the same problems now with tool sets that are becoming more integrated but at lower levels. This is partly what Neil Raden was just talking about. What we have to recognize is something that we see all along, I mean since the beginning of (laughs) corporate computing. We have different levels of extraction and you know at the very bottom, when you're dealing with things like Tensorflow or MXNet, that's not for mainstream enterprises. That's for you know, the big sophisticated tech companies who are building new algorithms on those frameworks. There's a level above that where you're using like a spark cluster in the machine learning built into that. That's slightly more accessible but when we talk about mainstream enterprises taking advantage of AI, the low hanging fruit is for them to use the pre-trained models that the public cloud vendors have created with all the consumer data on speech, image recognition, natural language processing. And then some of those capabilities can be further combined into applications like managing a contact center and we'll see more from like Amazon, like recommendation engines, fulfillment optimization, pricing optimization. >> So our expectation ultimately George is that we're going to see a lot of this, a lot of AI adoption happen through existing applications because the vendors that are capable of acquiring a talent, taking or experimenting, creating value, software vendors are going to be where a lot of the talent ends up. So Neil, we have an example of that. Give us an example of what we think is going to happen in 2018 when we start thinking about exploiting AI and applications. >> Neil: I think that it's fairly clear to be the application of what's called advanced analytics and data science and even machine learning. But really, it's rapidly becoming a commonplace in organizations not just at the bottom of the triangle here. But I like the example of SalesForce.com. What they've done with Einstein, is they've made machine learning and I guess you can say, AI applications available to their customer base and why is that a good thing? Because their customer base already has a giant database of clean data that they can use. So you're going to see a huge number of applications being built with Einstein against Salesforce.com data. But there's another thing to consider and that is a long time ago Salesforce.com built connectors to a zillion times of external data. So, if you're a SalesForce.com customer using Einstein, you're going to be able to use those advanced tools without knowing anything about how to train a machine learning model and start to build those things. And I think that they're going to lead the industry in that sense. That's going to push their revenue next year to, I don't know, 11 billion dollars or 12 billion dollars. >> Great, thanks Neil. All right so when we think about further evidence of this and further impacts, we ultimately have to consider some of the challenges associated with how we're going to create application value continually from these tools. And that leads to the idea that one of the cobblers children, it's going to gain or benefit from AI will in fact be the developer organization. Jim, what's our prediction for how auto-programming impacts development? >> Jim: Thank you very much Peter. Yeah, automation, wow. Auto-programming like I said is the epitome of enterprise application development for us going forward. People know it as co-generation but that really understates the control of auto-programming as it's evolving. Within 2018, what we're going to see is that machine learning driven co-generation approach of becoming the forefront of innovation. We're seeing a lot of activity in the industry in which applications use ML to drive the productivity of developers for all kinds of applications. We're also seeing a fair amount of what's called RPA, robotic process automation. And really, how they differ is that ML will deliver or will drive co-generation, from what I call the inside out meaning, creating reams of code that are geared to optimize a particular application scenario. This is RPA which really takes over the outside in approach which is essentially, it's the evolution of screen scraping that it's able to infer the underlined code needed for applications of various sorts from the external artifacts, the screens and from sort of the flow of interactions and clips and so forth for a given application. We're going to see that ML and RPA will compliment each other in the next generation of auto-programming capabilities. And so, you know, really application development tedium is really the enemy of, one of the enemies of productivity (static interference with web-conference). This is a lot of work, very detailed painstaking work. And what they need is to be better, more nuanced and more adaptive auto-programming tools to be able to build the code at the pace that's absolutely necessary for this new environment of cloud computing. So really AI-related technologies can be applied and are being applied to application development productivity challenges of all sorts. AI is fundamental to RPA as well. We're seeing a fair number of the vendors in that stage incorporate ML driven OCR and natural language processing and screen scraping and so forth into their core tools to be able to quickly build up the logic albeit to drive sort of the verbiage outside in automation of fairly complex orchestration scenario. In 2018, we'll see more of these technologies come together. But you know, they're not a silver bullet. 'Cause fundamentally and for organizations that are considering going deeply down into auto-programming they're going to have to factor AI into their overall plans. They need to get knowledgeable about AI. They're going to need to bring more AI specialists into their core development teams to be able to select from the growing range of tools that are out there, RPA and ML driven auto-programming. Overall, really what we're seeing is that the AI, the data scientists, who's been the fundamental developer of AI, they're coming into the core of development tools and skills in organizations. And they're going to be fundamental to this whole trend in 2018 and beyond. If AI gets proven out in auto-programming, these developers will then be able to evangelize the core utility of the this technology, AI. In a variety of other backend but critically important investments that organizations will be making in 2018 and beyond. Especially in IT operations and in management, AI is big in that area as well. Back to you there, Peter. >> Yeah, we'll come to that a little bit later in the presentation Jim, that's a crucial point but the other thing we want to note here regarding ultimately how folks will create value out of these technologies is to consider the simple question of okay, how much will developers need to know about infrastructure? And one of the big things we see happening is this notion of serverless. And here we've called it serverless, developer more. Jim, why don't you take us through why we think serverless is going to have a significant impact on the industry, at least certainly from a developer perspective and developer productivity perspective. >> Jim: Yeah, thanks. Serverless is really having an impact already and has for the last several years now. Now, everybody, many are familiar in the developer world, AWS Lambda which is really the ground breaking public cloud service that incorporates the serverless capabilities which essentially is an extraction layer that enables developers to build stateless code that executes in a cloud environment without having to worry about and to build microservices, we don't have to worry about underlined management of containers and virtual machines and so forth. So in many ways, you know, serverless is a simplification strategy for developers. They don't have to worry about the underlying plumbing. They can worry, they need to worry about the code, of course. What are called Lambda functions or functional methods and so forth. Now functional programming has been around for quite a while but now it's coming to the form in this new era of serverless environment. What we'll see in 2018 is that we're predicting is that more than 50% of lean microservices employees, in the public cloud will be deployed in serverless environments. There's AWS and Microsoft has the Azure function. IMB has their own. Google has their own. There's a variety of private, there's a variety of multiple service cloud code bases for private deployment of serverless environments that we're seeing evolving and beginning to deploy in 2018. They all involve functional programming which really, along, you know, when coupled with serverless clouds, enables greater scale and speed in terms of development. And it's very agile friendly in the sense that you can quickly Github a functionally programmed serverless microservice in a hurry without having to manage state and so forth. It's very DevOps friendly. In the very real sense it's a lot faster than having to build and manage and tune. You know, containers and DM's and so forth. So it can enable a more real time and rapid and iterative development pipeline going forward in cloud computing. And really fundamentally what serverless is doing is it's pushing more of these Lamba functions to the Edge, to the Edges. If you're at an AWS Green event last week or the week before, but you notice AWS is putting a big push on putting Lambda functions at the Edge and devices for the IoT as we're going to see in 2018. Pretty much the entire cloud arena. Everybody will push more of the serverless, functional programming to the Edge devices. It's just a simplification strategy. And that actually is a powerful tool for speeding up some of the development metabolism. >> All right, so Jim let me jump in here and say that we've now introduced the, some of these benefits and really highlighted the role that the cloud is going to play. So, let's turn our attention to this question of cloud optimization. And Stu, I'm going to ask you to start us off by talking about what we mean by true private cloud and ultimately our prediction for private cloud. Do we have, why don't you take us through what we think is going to happen in this world of true private cloud? >> Stuart: Sure Peter, thanks a lot. So when Wikibon, when we launched the true private cloud terminology which was about two weeks ago next week, two years ago next week, it was in some ways coming together of a lot of trends similar to things that you know, George, Neil and James have been talking about. So, it is nothing new to say that we needed to simplify the IT stack. We all know, you know the tried and true discussion of you know, way too much of the budget is spent kind of keeping lights on. What we'd like to say is kind of running the business. If you squint through this beautiful chart that we have on here, a big piece of this is operational staffing is where we need to be able to make a significant change. And what we've been really excited and what led us to this initial market segment and what we're continuing to see good growth on is the move from traditional, really siloed infrastructure to you want to have, you know, infrastructure where it is software based. You want IT to really be able to focus on the application services that they're running. And what our focus for the this for the 2018 is of course it's the central point, it's the data that matters here. The whole reason we've infrastructured this to be able to run applications and one of the things that is a key determiner as to where and what I use is the data and how can I not only store that data but actually gain value from that data. Something we've talked about time and again and that is a major determining factor as to am I building this in a public cloud or am I doing it in you know my core. Is it something that is going to live on the Edge. So that's what we were saying here with the true private cloud is not only are we going to simplify our environment and therefore it's really the operational model that we talked about. So we often say the line, cloud is not a destination. But it's an operational model. So a true private cloud giving me some of the you know, feel and management type of capability that I had had in the public cloud. It's, as I said, not just virtualization. It's much more than that. But how can I start getting services and one of the extensions is true private cloud does not live in isolation. When we have kind of a core public cloud and Edge deployments, I need to think about the operational models. Where data lives, what processing happens need to be as environments, and what data we'll need to move between them and of course there's fundamental laws of physics that we need to consider in that. So, the prediction of course is that we know how much gear and focus has been on the traditional data center. And true private cloud helps that transformation to modernization and the big focus is many of these applications we've been talking about and uses of data sets are starting to come into these true private cloud environments. So, you know, we've had discussions. There's Spark, there's modern databases. Many of these, there's going to be many reasons why they might live in the private cloud environment. And therefore that's something that we're going to see tremendous growth and a lot of focus. And we're seeing a new wave of companies that are focusing on this to deliver solutions that will do more than just a step function for infrastructure or get us outside of our silos. But really helps us deliver on those cloud native applications where we pull in things like what Jim was talking about with serverless and the like. >> All right, so Stu, what that suggests ultimately is that data is going to dictate that everything's not going to end up in the private or in the public cloud or centralized public clouds because of latency costs, data governance and IP protection reasons. And there will be some others. At bare minimum, that means that we're going to have it in most large enterprises as least a couple of clouds. Talk to us about what this impact of multi cloud is going to look like over the course of the next few years. >> Stuart: Yeah, critical point there Peter. Because, right, unfortunately, we don't have one solution. There's nobody that we run into that say, oh, you know, I just do a single you know, one environment. You know it would be great if we only had one application to worry about. But as you've done this lovely diagram here, we all use lots of SaaS and increasingly, you know, Oracle, Microsoft, SalesForce, you know, all pushing everybody to multiple SaaS environments that has major impacts on my security and where my data lives. Public clouds, no doubt is growing at leaps and bounds. And many customers are choosing applications to live in different places. So just as in data centers, I would kind of look at it from an application standpoint and build up what I need. Often, there's you know, Amazon doing phenomenal. But you know, maybe there's things that I'm doing with Azure. Maybe there's things that's I'm doing with Google or others as well as my service providers for locality, for you know, specialized services, that there's reasons why people are doing it. And what customers would love is an operational model that can actually span between those. So we are very early in trying to attack this multi cloud environment. There's everything from licensing to security to you know, just operationally how do I manage those. And a piece of them that we were touching on in this prediction year, is Kubernetes actually can be a key enabler for that cloud native environment. As Jim talked about the serverless, what we'd really like is our developer to be able to focus on building their application and not think as much about the underlined infrastructure whether that be you know, racket servers that I built myself or public cloud infrastructures. So we really want to think more it's at the data and application level. It's SaaS and pass is the model and Kubernetes holds the promise to solve a piece of this puzzle. Now Kubernetes is not by no means a silver bullet for everything that we need. But it absolutely, it is doing very well. Our team was at the Linux, the CNCF show at KubeCon last week and there is you know, broad adoption from over 40 of the leading providers including Amazon is now a piece. Even SalesForce signed up to the CNCF. So Kubernetes is allowing me to be able to manage multi cloud workflows and therefore the prediction we have here Peter is that 50% of developing teams will be building, sustaining multi cloud with Kubernetes as a foundational component of that. >> That's excellent Stu. But when we think about it, the hardware of technology especially because of the opportunities associated with true private cloud, the hardware technologies are also going to evolve. There will be enough money here to sustain that investment. David Floyer, we do see another architecture on the horizon where for certain classes of workloads, we will be able to collapse and replicate many of these things in an economical, practical way on premise. We call that UniGrid, NVME is, over fabric is a crucial feature of UniGrid. >> Absolutely. So, NVMe takes, sorry NVMe over fabric or NVMe-oF takes NVMe which is out there as storage and turns it into a system framework. It's a major change in system architecture. We call this UniGrid. And it's going to be a focus of our research in 2018. Vendors are already out there. This is the fastest movement from early standards into products themselves. You can see on the chart that IMB have come out with NVMe over fabrics with the 900 storage connected to the power. Nine systems. NetApp have the EF750. A lot of other companies are there. Meta-Lox is out there looking for networks, for high speed networks. Acceler has a major part of the storage software. So and it's going to be used in particular with things like AI. So what are the drivers and benefits of this architecture? The key is that data is the bottleneck for application. We've talked about data. The amount of data is key to making applications more effective and higher value. So NVMe and NVMe over fabrics allows data to be accessed in microseconds as opposed to milliseconds. And it allows gigabytes of data per second as opposed to megabytes of data per second. And it also allows thousands of processes to access all of the data in very very low latencies. And that gives us amazing parallelism. So what's is about is disaggregation of storage and network and processes. There are some huge benefits from that. Not least of which is you save about 50% of the processor you get back because you don't have to do storage and networking on it. And you save from stranded storage. You save from stranded processor and networking capabilities. So it's overall, it's going to be cheaper. But more importantly, it makes it a basis for delivering systems of intelligence. And systems of intelligence are bringing together systems of record, the traditional systems, not rewriting them but attaching them to real time analytics, real time AI and being able to blend those two systems together because you've got all of that additional data you can bring to bare on a particular problem. So systems themselves have reached pretty well the limit of human management. So, one of the great benefits of UniGrid is to have a single metadata lab from all of that data, all of those processes. >> Peter: All those infrastructure elements. >> All those infrastructure elements. >> Peter: And application. >> And applications themselves. So what that leads to is a huge potential to improve automation of the data center and the application of AI to operations, operational AI. >> So George, it sounds like it's going to be one of the key potential areas where we'll see AI be practically adopted within business. What do we think is going to happen here as we think about the role that AI is going to play in IT operations management? >> Well if we go back to the analogy with big data that we thought was going to you know, cure cancer, taste like chocolate, cost a dollar, and it turned out that the application, the most wide spread application of big data was to offload ETL from expensive data warehouses. And what we expect is the first widespread application of AI embedded in applications for horizontal use where Neil mentioned SalesForce and the ability to use Einstein as SalesForce data and connected data. Now because the applications we're building are so complex that as Stu mentioned you know, we have this operational model with a true private cloud. It's actually not just the legacy stuff that's sucking up all the admin overhead. It's the complexity of the new applications and the stringency of the SLA's, means that we would have to turn millions of people into admins, the old you know, when the telephone networks started, everyone's going to have to be an operator. The only way we can get past this is if we sort of apply machine learning to IT Ops and application performance management. The key here is that the models can learn how the infrastructure is laid out and how it operates. And it can also learn about how all the application services and middleware works, behaving independently and with each other and how they tie with the infrastructure. The reason that's important is because all of a sudden you can get very high fidelity root cause analysis. In the old management technology, if you had an underlined problem, you'd have a whole sort of storm of alerts, because there was no reliable way to really triangulate on the or triage the root cause. Now, what's critical is if you have high fidelity root cause analysis, you can have really precise recommendations for remediation or automated remediation which is something that people will get comfortable with over time, that's not going to happen right away. But this is critical. And this is also the first large scale application of not just machine learning but machine data and so this topology of collecting widely desperate machine data and then applying models and then reconfiguring the software, it's training wheels for IoT apps where you're going to have it far more distributed and actuating devices instead of software. >> That's great, George. So let me sum up and then we'll take some questions. So very quickly, the action items that we have out of this overall session and again, we have another 15 or so predictions that we didn't get to today. But one is, as we said, digital business is the use of data assets to compete. And so ultimately, this notion is starting to diffuse rapidly. We're seeing it on theCUbE. We're seeing it on the the CrowdChats. We're seeing it in the increase of our customers. Ultimately, we believe that the users need to start preparing for even more business scrutiny over their technology management. For example, something very simple and David Floyer, you and I have talked about this extensively in our weekly action item research meeting, the idea of backing up and restoring a system is no longer in a digital business world. It's not just backing up and restoring a system or an application, we're talking about restoring the entire business. That's going to require greater business scrutiny over technology management. It's going to lead to new organizational structures. New challenges of adopting systems, et cetera. But, ultimately, our observations is that data is going to indicate technology directions across the board whether we talk about how businesses evolve or the roles that technology takes in business or we talk about the key business capability, digital business capabilities, of capturing data, turning it into value and then turning into work. Or whether we talk about how we think about cloud architecture and which organizations of cloud resources we're going to utilize. It all comes back to the role that data's going to play in helping us drive decisions. The last action item we want to put here before we get to the questions is clients, if we don't get to your question right now, contact us. Send us an inquiry. Support@silicongangle.freshdesk.com. And we'll respond to you as fast as we can over the course of the next day, two days, to try to answer your question. All right, David Vellante, you've been collecting some questions here. Why don't we see if we can take a couple of them before we close out. >> Yeah, we got about five or six minutes in the chat room, Jim Kobielus has been awesome helping out and so there's a lot of detailed answer there. The first, there's some questions and comments. The first one was, are there too many chiefs? And I guess, yeah. There's some title inflation. I guess my comment there would be titles are cheap, results aren't. So if you're creating chief X officers just for the, to check a box, you're probably wasting money. So you've got to give them clear roles. But I think each of these chiefs has clear roles to the extent that they are you know empowered. Another comment came up which is we don't want you know, Hadoop spaghetti soup all over again. Well true that. Are we at risk of having Hadoop spaghetti soup as the centricity of big data moves from Hadoop to AI and ML and deep learning? >> Well, my answer is we are at risk of that but that there's customer pressure and vendor economic pressure to start consolidating. And we'll also see, what we didn't see in the ArpiM big data era, with cloud vendors, they're just going to start making it easier to use some of the key services together. That's just natural. >> And I'll speak for Neil on this one too, very quickly, that the idea ultimately is as the discipline starts to mature, we won't have people that probably aren't really capable of doing some of this data science stuff, running around and buying a tool to try to supplement their knowledge and their experience. So, that's going to be another factor that I think ultimately leads to clarity in how we utilize these tools as we move into an AI oriented world. >> Okay, Jim is on mute so if you wouldn't mind unmuting him. There was a question, is ML a more informative way of describing AI? Jim, when you and I were in our Boston studio, I sort of asked a similar question. AI is sort of the uber category. Machine learning is math. Deep learning is a more sophisticated math. You have a detailed answer in the chat. But maybe you can give a brief summary. >> Jim: Sure, sure. I don't want too pedantic here but deep learning is essentially, it's a lot more hierarchical deeper stacks of neural network of layers to be able to infer high level extractions from data, you know face recognitions, sentiment analysis and so forth. Machine learning is the broader phenomenon. That's simply along a different and part various approaches for distilling patterns, correlations and algorithms from the data itself. What we've seen in the last week, five, six tenure, let's say, is that all of the neural network approaches for AI have come to the forefront. And in fact, the core often market place and the state of the art. AI is an ancient paradigm that's older than probably you or me that began and for the longest time was rules based system, expert systems. Those haven't gone away. The new era of AI we see as a combination of both statical approaches as well as rules based approaches, and possibly even orchestration based approaches like graph models or building broader context or AI for a variety of applications especially distributed Edge application. >> Okay, thank you and then another question slash comment, AI like graphics in 1985, we move from a separate category to a core part of all apps. AI infused apps, again, Jim, you have a very detailed answer in the chat room but maybe you can give the summary version. >> Jim: Well quickly now, the most disruptive applications we see across the world, enterprise, consumer and so forth, the advantage involves AI. You know at the heart of its machine learning, that's neural networking. I wouldn't say that every single application is doing AI. But the ones that are really blazing the trail in terms of changing the fabric of our lives very much, most of them have AI at their heart. That will continue as the state of the art of AI continues to advance. So really, one of the things we've been saying in our research at Wikibon `is that the data scientists or those skills and tools are the nucleus of the next generation application developer, really in every sphere of our lives. >> Great, quick comment is we will be sending out these slides to all participants. We'll be posting these slides. So thank you Kip for that question. >> And very importantly Dave, over the course of the next few days, most of our predictions docs will be posted up on Wikibon and we'll do a summary of everything that we've talked about here. >> So now the questions are coming through fast and furious. But let me just try to rapid fire here 'cause we only got about a minute left. True private cloud definition. Just say this, we have a detailed definition that we can share but essentially it's substantially mimicking the public cloud experience on PRIM. The way we like to say it is, bringing the cloud operating model to your data versus trying to force fit your business into the cloud. So we've got detailed definitions there that frankly are evolving. about PaaS, there's a question about PaaS. I think we have a prediction in one of our, you know, appendices predictions but maybe a quick word on PaaS. >> Yeah, very quick word on PaaS is that there's been an enormous amount of effort put on the idea of the PaaS marketplace. Cloud Foundry, others suggested that there would be a PaaS market that would evolve because you want to be able to effectively have mobility and migration and portability for this large cloud application. We're not seeing that happen necessarily but what we are seeing is that developers are increasingly becoming a force in dictating and driving cloud decision making and developers will start biasing their choices to the platforms that demonstrate that they have the best developer experience. So whether we call it PaaS, whether we call it something else. Providing the best developer experience is going to be really important to the future of the cloud market place. >> Okay great and then George, George O, George Gilbert, you'll follow up with George O with that other question we need some clarification on. There's a question, really David, I think it's for you. Will persistent dims emerge first on public clouds? >> Almost certainly. But public clouds are where everything is going first. And when we talked about UniGrid, that's where it's going first. And then, the NVMe over fabrics, that architecture is going to be in public clouds. And it has the same sort of benefits there. And NV dims will again develop pretty rapidly as a part of the NVMe over fabrics. >> Okay, we're out of time. We'll look through the chat and follow up with any other questions. Peter, back to you. >> Great, thanks very much Dave. So once again, we want to thank you everybody here that has participated in the webinar today. I apologize for, I feel like Hans Solo and saying it wasn't my fault. But having said that, none the less, I apologize Neil Raden and everybody who had to deal with us finding and unmuting people but we hope you got a lot out of today's conversation. Look for those additional pieces of research on Wikibon, that pertain to the specific predictions on each of these different things that we're talking about. And by all means, Support@silicongangle.freshdesk.com, if you have an additional question but we will follow up with as many as we can from those significant list that's starting to queue up. So thank you very much. This closes out our webinar. We appreciate your time. We look forward to working with you more in 2018. (upbeat music)